Australian economic data have continued to underperform, with retail sales and Q4 GDP printing below expectations. RBA Governor Lowe continued to emphasize that near-term rate hikes are unlikely.
EUR should continue on its upward trend, buoyed by robust data and the announcement that the SPD has confirmed a coalition with the CDU, which should result in expansionary fiscal policy and bolster the prospect of European integration - in turn leading to reduced political risk premia in Europe.
The risk to this trade is that the RBA turns more hawkish, pushing AUD higher.
EUR should continue on its upward trend, buoyed by robust data and the announcement that the SPD has confirmed a coalition with the CDU, which should result in expansionary fiscal policy and bolster the prospect of European integration - in turn leading to reduced political risk premia in Europe.
The risk to this trade is that the RBA turns more hawkish, pushing AUD higher.
Note
Should be LONG, but can't edit TradingView post after 15 minutes ;P
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.