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FUNDAMENTAL ANALYSIS

EUR/AUD: An RBA Rate Cut to Usher Us Back to 1.54?

EURAUD, RBA Rate, Cut to, Usher, Us, Back, 1.54, Fundamental Analysis, fx trader, forex

20 Jul 2016

Another Asia-Pacific central bank poised to ease policy lays to rest any hopes that the region is anywhere near a booming recovery. But while European and US equity markets briefly threw their toys out of the pram on RBA chatter about a coming Aussie rate cut on Tuesday, currency traders will have been licking their lips with glee if/when they came across this little baby. Sure, the Euro’s been a bit under the cosh of late, but a nice convergence of technical and fundamental factors on the EUR/AUD chart makes for a potential (and rare!) opportunity to go long the ailing European single currency!

 

EURAUD, RBA Rate, Cut to, Usher, Us, Back, 1.54, Fundamental Analysis, fx trader, forex chart

EUR/AUD Daily chart

The Australian economy is kind of stuck in transition – from a mining-led economy to a, well, non-mining led one. Its latest GDP reading, in June this year, came in at 1.1%. If you average the last 12-months-worth of GDP growth it’s a rather meagre 0.78% on a quarterly basis.

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