The rates continue within the uptrend in favor of the Euro. Strangely enough, the European currency ended up being more valuable than the Australian one. Amid fears of an impending recession, AUD turned out to be more vulnerable, since investors have no desire to take risks. As AUD is also reliant on China, Australia will be the first to suffer from it if China is affected.
Nevertheless, we can see good chances of recovery against the euro. The Australian dollar can count on support due to a more aggressive monetary policy. The RBA will meet next week and we will definitely see an increase in the rate. As for Europe, there is a decline in business activity, and there are no less problems in the economy than in Australia. At the same time, Europe, the closer to winter, the more it will experience a shortage of energy resources, which threatens the entire EU industry, while Australia does not experience any problems in this area except for the rising cost of commodities. The ECB, on the other hand, has lagged behind the RBA in terms of adjusting the rate and is less consistent in this regard.
We can already notice a downward trend for the AUD today, which is the third day. It's too early to talk about a trend reversal, but even within the current trend with its wide range allows AUD to strengthen significantly. The majority of technical analysis tools confirm our forecasts and give a strong Sell signal. Therefore, today we are selling Euros and buying AUD.
