Free Trial

/EUR: CBA Look For A Fall

AUD

CBA note that their fair value indicates that “fair value for AUD/EUR is in the range of EUR0.63‑0.71. Fair value for AUD/EUR has been trending higher since early 2020. A lift in the Australian terms of trade and a fall in the Eurozone terms of trade have been key drivers of a higher fair value. Looking ahead we are forecasting AUD/EUR to fall as the world economy slows. In our view market pricing for the RBA cash rate is too aggressive, while pricing for the ECB over the year ahead is about right. An eventual unwinding of RBA market pricing will also weigh on AUD/EUR.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

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.