Ones to Watch: EUR/AUD

Published 01/23/2012, 04:27 AM
Can EUR/AUD break below 1.2250? Last week’s 2% rally in the euro pushed EUR/AUD above 1.2400, albeit briefly. However, late on Thursday, on the back of increasing concern surrounding the situation in Athens, the EUR broke away from trading in line with risk currencies. Accordingly, this has re-opened the avenue – separation of sentiment surrounding Europe and the rest of the world - which previously saw the pair create an all time low. Nevertheless, our concern is that this is only a temporary break; a disorderly Greek default might be powerful enough to send risk assets lower across the board. But this is not our base case and we can therefore see some more upside for the aussie against the euro.
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