EUR/AUD is marginally below 1.18 after touching above 1.1850 but failing at the late-July high.Long EUR/AUD positions remain among the best performers this week.
It’s instructive that the euro has lagged AUD even with risk appetite fading and the US dollar making gains but I would be hesitant to read-in too much. My expectations is that profit-taking is the main driver as fast-money traders wind down a quiet week.
The Australian Treasury report has been getting attention in today’s Aussie sell off but, if anything, it re-iterates that no intervention is forthcoming.
Bids 1.1795/90.
Looking ahead, a break above 1.1856 opens the way for a further retracement to 1.2145, which is a target I highlighted early in the week.
