EUR/AUD is up almost 1% already today and as I mentioned earlier this week, there are some possibilities of a classic ‘scissors’ move in this pair if the EFSF gets past go and wins widespread market approval. Such an event could see the EUR rally hard and it would also guarantee at least a 25 bps rate cut in Australia, sending the AUD lower; certainly something to watch out for.
Next resistance in the EUR/USD is at 1.3960 and there has been talk of barriers at 1.4000, though I have no confirmation.
