After a period of several months of trading in range, the EUR / AUD has been trending down since October 2020, hitting two-year lows. Westpac economists are targeting the 1.5250 mark by the end of 2021.
Key statements:
“We hope that the World economy recover dramatically in the second half of 2021, a classic scenario for the AUD to outperform. “
“The European Central Bank it is uneasy about the appreciation of the euro, with core inflation in the Eurozone stagnant at a record low of 0.2% annually in the fourth quarter of 2020. The slow vaccination process of the European Union is also a drag on the currency. “
“Australia’s economic recovery has faced far fewer disruptions. But with wage growth at record lows and ongoing border closures hitting service exports, the Reserve Bank of Australia was quick to announce an additional AUD 100bn in QE and a probable cash rate of 0.1% until at least 2024. This stance should help stem the EUR / AUD’s slide to around 1.56 in the coming weeks and 1.52 by the end. 2021 “.
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