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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD
AUD/EUR was pressured last week, printing its lowest level since early 2022. The pair found support below $0.62 rising ~1% off cycle lows.
- The pair fell ~6% from 2023 highs seen in late January, rate differentials observed via 2 Year swap rates have narrowed from -80bps to -30bps.
- In the rates space ECB terminal rates pricing has fallen in OIS markets, in lieu of the fallout from the collapse of SVB and concerns re the US banking sector, from 3.9% to ~3.5% over the last week. RBA dated futures all but priced out any further rate hikes, the terminal rate is holding steady at ~3.6% through 2023.
- Technically the pair remains in a downtrend. Bulls first look to break the 20-Day EMA at $0.6311 to turn the tide. Bears look to target the 2021 low at $0.6084.
Fig 1: AUD/EUR Daily Spot, EMAs
Source: MNI/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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