AUD to EURO Exchange Rate

Monday 14th May 2012 4:42 PM (NZT)
The recent range continues for this pair., albeit the AUD is under some pressure. As the European crisis is the cause of the slowing global growth profile, the AUD economy is directly affected and this is causing the AUD under performance. This week’s Australian focus comes in the form of the RBA monetary policy meeting minutes on Tuesday. Later on Tuesday in Europe, the European GDP numbers are released. On Wednesday come the Inflation numbers. Expect the current established range to continue in the short term.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7779	.7750	.7950	.7745 - .7826
EURO/AUD	1.2855	1.2579	1.2903	1.2778 - 1.2911

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Monday 7th May 2012 :42 PM (NZT)
This pairing remains in somewhat familiar territory. The economic data and political situation in Europe, coupled with the RBA cut of 50 pts to the Australian cash rate saw the AUD underperform for much of last week. The AUD has started the week higher against the EURO because of election results in Greece. The volatility will likely continue until some definitive conclusion is found in Greece. This week sees the Australian focus on the employment numbers on Thursday. Also of influence will be the Chinese trade balance and inflation data later in the week. Europe will no doubt provide the majority of the lead as developments play out there affect the global appetite for risk.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7810	.7750	.7950	.7746 - .7890
EURO/AUD	1.2804	1.2579	1.2903	1.2674 - 1.2910

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Monday 30th April 2012 4:42 PM (NZT)
The AUD saw initial pressure from the EURO last week. The AUD low for the week was set following the Australian inflation numbers that pointed towards an RBA cash rate cut this week. However since reaching the weeks lows the AUD saw grinding appreciation for the remainder of the week to finish at the highs. This week starts just back from those highs and has a distinct central bank focus. The RBA will likely cut the cash rate to 4.0% tomorrow. On Thursday it is the turn of the ECB to meet, but a change is unlikely at this meeting. Pressure is building for a cut from the current 1.0% cash rate. This comes after a sharp pull back in expectations for the wider European economy for 2012 and beyond. The .7950 (1.2580) level represents solid EURO support, and it would surprise to see this levels breached in the coming week.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7890	.7750	.7950	.7786 - .7904
EURO/AUD	1.2674	1.2579	1.2903	1.2650 - 1.2843

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Monday 23rd April 2012 4:06 PM (NZT)
The Australian dollar lost ground to the EURO across the course of last week, but by no means was the traffic all in the EURO’s favour. The prospect of a lowering cash rate should temper outright demand for Australian dollars to a reasonable extent ahead of the inflation number due in Australia on Tuesday. In Europe there are various manufacturing numbers due for release today, but for the most part the focus will remain of the peripheral member debt markets, and elections in France. Expect further sideways movement within the recent range for this pairing this week in the absence of any upside surprise from the Australian inflation numbers.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7842	.7750	.7950	.7829 - .7952
EURO/AUD	1.2751	1.2579	1.2903	1.2575 - 1.2913

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Monday 16th April 2012 4:01 PM (NZT)
The stronger than expected Australian employment data provided the initial boost to the AUD. The move was aided by the re-escalation of Spanish funding concerns that will likely continue this week. The key resistance at .7950 (support 1.2580) has held for the time being, and any further appreciation from the AUD will likely be harder fought from current levels. The RBA monetary meeting minutes when released on Tuesday provide the initial focus, ahead of German economic sentiment numbers also on Tuesday. The week is rounded out by German business outlook numbers on Friday. Expect the spotlight to remain on the funding markets in Europe and political tensions growing at the ECB.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7925	.7750	.7950	.7818 - .7941
EURO/AUD	1.2618	1.2580	1.2903	1.2593 - 1.2790

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Tuesday 10th April 2012 6:02 PM (NZT)
The EURO saw renewed pressure from the AUD last week and was not able to hold the crucial level .7830 (1.2770). The move was led by EURO weakness, as opposed to any outright AUD strength. Political instability and increased concerns about Spain’s debt funding ability were the main drivers. This week will see the focus remain on the Euro-zone debt markets, especially ahead of the Australian employment numbers on Thursday.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7859	.7750	.7950	.7754 - .7902
EURO/AUD	1.2724	1.2579	1.2903	1.2627 - 1.2913

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Monday 2nd April 2012 5:11 PM (NZT)
The EURO continued it outperformance of the AUD throughout the course of last week. The increasing outlook for a cut to the cash rate from the RBA has aided the move back towards more historically average levels. The better than expected Chinese manufacturing data released over the weekend did give the AUD a boost to start this week, but it has reversed a portion of its gains since then thanks to some weak building numbers in Australia. Tomorrows RBA decision is the initial focus, but we also have a monetary policy decision from the European Central Bank on Wednesday. Expect an unchanged decision, but their statement will be closely followed as usual. Expect further progress from the EUR over the AUD to be harder fought from current levels, as the easy ground has been taken back already. A less downbeat assessment than expected from the RBA tomorrow, as unlikely as it maybe, would prompt some appreciation from the AUD.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7793	.7650	.7850	.7744 - .7919
EURO/AUD	1.2832	1.2740	1.3070	1.2627 - 1.2913

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Monday 26th March 2012 4:50 PM (NZT)
The Australian dollar has continued to see further pressure from the EURO. The AUD has managed to consolidate off the recent lows, albeit not by a large margin. As long as the pair can continue to consolidate below resistance at .7920 (above support 1.2620), then further investigations lower from the AUD will be forth coming. There is little in the way of economic data in Australia this week, so expect the bulk of the focus to come from Europe. German business confidence numbers will be the focus alongside the progress of the EU summit towards measures to contain any further debt issues from its members.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7888	.7720	.7920	.7836 - .8059
EURO/AUD	1.2677	1.2620	1.2950	1.2408 - 1.2762

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Monday 19th March 2012 4:15 PM (NZT)
For the most part this pairing traded a relatively narrow range throughout last week. The AUD saw some intense early pressure from the EURO, but the EURO strength was not sustained and ground was quickly given back up. Again initial support will come around the .8020 level (resistance 1.2470). Consolidation through this level opens the way for further EURO strength. In Europe this week we have various manufacturing data releases and a speech by ECB head Draghi on Friday. In Australia the focus comes from the latest RBA monetary policy meeting minutes as they are released on Tuesday. If Euro-zone peripheral member state interest rates continue to fall, the EURO should apply further pressure on the AUD.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.8047	.8020	.8220	.7966 - .8070
EURO/AUD	1.2427	1.2165	1.2470	1.2392 - 1.2553

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Monday 12th March 2012 4:07 PM (NZT)
The Australian dollar came under pressure from the EURO early last week. The Chinese downgrade of expectations for 2012 drove the AUD weakness. Next came weaker than expected Australian GDP number, but the AUD absorbed that without losing much ground. In hindsight, that was a sign of some EURO weakness, which seemed to be bought on through the uncertainty surrounding the Greek debt swap. Now that is out of the way, the market should focus more on the economic numbers that come to hand. In Australia this week there is only home loan numbers tomorrow for focus. In Europe, German economic sentiment numbers Tuesday, and European inflation numbers Wednesday provide the focus. Further range trading looks likely in the short term. If the EURO can find some positive sentiment, the .7980 level (EUROAUD 1.2530), remains the next target for the EURO.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.8043	.7980	.8180	.7984 - .8141
EURO/AUD	1.2433	1.2225	1.2530	1.2265 - 1.2626

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Monday 5th March 2012 3:35 PM (NZT)
The AUD bounced back last week, as the EURO was not able to consolidate its gains from the previous week. With the ECB lending at the upper end of the expected range, the EURO easily succumbed to the selling pressure. This week sees both central banks announce monetary policy decisions. Both are expected to leave their cash rates unchanged. In Australia we also have GDP on Wednesday and employment numbers Thursday to provide the focus. As further details emerge with regards to the progress on the Greek debt swap, the EURO will react accordingly. A positive result will see EURO demand, if it looks unlikely the debt swap will succeed, the AUD will outperform.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.8115	.8020	.8220	.7920 - .8153
EURO/AUD	1.2323	1.2165	1.2470	1.2265 - 1.2626

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Monday 27th February 2012 4:15 PM (NZT)
The Australian dollar saw constant pressure from the resurgent EURO throughout the course of last week. This has continued into the start of this week, on the announcement Greece had opened the PSI, or debt swap program. Whilst this is not finalized, it appears at this stage that the 75% threshold for successful progression will be reached. Given the EURO is still at extremely elevated levels from a historical perspective, further demand for EURO should be seen. Along with potential PSI speed bumps, risks to further appreciation for the EURO come in the form of this week’s ECB longer term lending operations. The market has an expectation of around 500 billion worth of three year lending from the ECB, a number wide of that either side, would have repercussions for EURO demand.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.6205	.7820	.8020	.7920 - .8162
EURO/AUD	1.2599	1.2165	1.2470	1.2252 - 1.2626

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Monday 20th February 2012 5:15 PM (NZT)
The AUD remains at elevated levels against the EURO. Interestingly there was a sharp move lower in AUD, and higher in EUR on Friday. Market chatter was that this was investors exiting speculative positions ahead of the weekend. The market remains very “bought AUD and sold EUR”, so sharp corrections back in the favour of EUR, are possible at anytime. Expect the bulk of the lead to come from progress on the potential Greek debt swap. From an Australian perspective, the RBA monetary policy meeting minutes on Tuesday, and two RBA Gov. Stevens speeches will get attention. Any inkling of imminent further cuts to the cash rate in Australia, would see the AUD come under some pressure.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.8160	.8020	.8220	.8090 - .8228
EURO/AUD	1.2254	1.2165	1.2470	1.2153 - 1.2360

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Monday 13th February 2012 5:15 PM (NZT)
The Australian dollar again hit record highs against the EURO last week, following the unchanged cash rate decision from the RBA. However since then the EURO has seen some demand, as the progress in Greece towards a manageable debt loads continues. The success of the debt swap plan remains the key to the price action for this pair in the short term. The first step has been made with the positive vote from the Greek Parliament, next comes the EU/IMF acceptance and the subsequent release of the bailout funds, and then comes the debt swap acceptance. Expect this week and next to see periods of volatility, but hopefully we have seen the highs set for this latest move. The economic data remains almost inconsequential from the European point of view, but in Australia, Thursdays employment numbers will be closely watched.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.8105	.8020	.8220	.8048 - .8239
EURO/AUD	1.2338	1.2165	1.2470	1.2137 - 1.2425

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Monday 6th February 2012 5:15 PM (NZT)
The Australian dollar again set new record highs against the EURO last week, as the positive global economic news boosted the demand for AUD. The pairing opens the week with the AUD slightly lower. This is unsurprising given the prospect of a cut to the cash of 25pts from the RBA on Tuesday at their monetary policy announcement. This announcement will be closely watched, as will its quarterly Monetary Policy Statement on Friday. In Europe the market remains focused on the negotiations underway on the voluntary write downs of Greek debt. Any announcement will cause a reaction. Adding to the mix is the monthly ECB meeting  on Thursday, although no extra policy initiatives are expected at this meeting.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.8194	.8020	.8220	.8012 - .8216
EURO/AUD	1.2204	1.2165	1.2470	1.2171 - 1.2481

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Tuesday 31st January 2012 5:15 PM (NZT)
The Australian dollar set all times highs against the EURO early in the New Year. The resurgence of the EURO over the last week has seen the AUD pushed back from those extremes, but it remains at elevated levels. A consolidated break of the .8000 level (EUROAUD 1.2500), would open up the way for a corrective more lower for the AUD. Given the uncertain outlook in Europe, nothing can be assumed in the short term. Theory would say that with the RBA poised to cut the cash rate next week the demand for the AUD should temper somewhat, but reality may be a different story. A gloomier outlook for Asian prospects would weigh on the AUD and this would increase the likelihood of a corrective more lower from the AUD. Chinese manufacturing numbers  tomorrow, and inflation numbers next week will be the key to the short term outlook.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.8065	.7950	.8150	.8012 - .8114
EURO/AUD	1.2400	1.2270	1.2580	1.2324 - 1.2481

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Thursday 22th December 2011 3:40 PM (NZT)
Overvnight the AUD set new all times highs against the EURO at AUDEUR .7771 (EURAUD 1.2868) . Whilst this was shortlived it was caused by illiquid market conditions and a combination of other factors. Better than expected economic data, surporisingly good bond auctions results in Europe and a mad scramble to cover risk aversion trades by the speculative part of the market. The demand was quickly turned around as the ECB announced the results of there term funding offering program that was released on December 8th. Market expectation were for around 310billion EUR to be sought by European banks. A massive 489 billion in cash was sort and granted, usually the new extended range of securities as capital, including Governement guaranteed bonds. This illustrates the desparate nature of the current funding markets in Europe and is most definitely not a good sign for the outlook in 2012.

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Monday 19th December 2011 5:40 PM (NZT)
This pair remains in very familiar territory. Last week saw mixed trade which mostly proved sideways movement. Events in Europe have been leading the demand for AUD for the most part, so it is of little surprise that the pairing has been relatively stable. In Australia this week the release of the RBA monetary policy meeting minutes on Thursday will be a focus. In Europe, a speech by ECB President Draghi late Monday provides the focus, ahead of the German business climate numbers on Wednesday. Expect the pairing to remain within the .7500 - .7700 range this week.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7625	.7500	.7700	.7594 - .7710
EURO/AUD	1.3115	1.2990	1.3200	1.2970 - 1.3168

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Monday 12th December 2011 5:40 PM (NZT)
The AUD versus the EURO traded a relatively subdued range for the most part last week. The RBA cut to the cash rate, stronger than expected Australian growth and higher than expected unemployment rate, all were ironically of limited impact. The low Chinese inflation number on Thursday did however push growth assets lower and this saw the AUD move to the lows of the weeks range. The positive reaction to the EU summit and positive US data saw AUD recover to the current levels. The lead for the week will be driven by sentiment in Europe for the most part, with German sentiment numbers on Tuesday coming in, ahead of the Euro-zone inflation numbers on Thursday.   

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7625	.7500	.7700	.7557 - .7712
EURO/AUD	1.3115	1.2990	1.3200	1.2967 - 1.3233

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Monday 5th December 2011 5:25 PM (NZT)
The Australian dollar saw steady appreciation over the EURO at the start of last week, that really accelerated once the coordinated central bank action on US dollar funding was announced. The pair has now consolidated  at the current elevated levels, which represent great value buying of EUR with AUD. Tuesday sees the RBA announce the cash rate, and a 25pt cut to 4.25% can be expected. Wednesday sees the 3^rd quarter Australian GDP number announced. Thursday sees the Australian employment numbers released ahead of the ECB cash rate decision. The ECB are also expected to cuts their cash rate by 25pts to 1.0%, in an effort to support the ailing European economy.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7629	.7450	.7650	.7238 - .7401
EURO/AUD	1.3108	1.3070	1.3420	1.3512 - 1.3816

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Monday 28th November 2011 5:25 PM (NZT)
The AUD gave up ground to the EUR last week as the wider market risk aversion gathered momentum. The weekends rumour that the IMF is to offer Italy a large funding package has seen the AUD open up higher against the EURO. With economic data on the back burner for the time being, the lead for this pair will no doubt come from events in Europe this week. Critical will be the confirmation of this package for Italy whose funding costs have ballooned to unsustainable levels. Expect demand for EURO on dips to continue as the European bank repatriation of assets continues.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7403	.7230	.7430	.7238 - .7401
EURO/AUD	1.3508	1.3450	1.3830	1.3512 - 1.3816

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Monday 21st November 2011 6:15 PM (NZT)
After a stable start to last week, the wider market risk aversion increased and this saw the EUR put renewed pressure on the AUD. Given the current market sentiment in place the current bias to the downside should continue for the AUD. There is an absence of data in Australia this week, so the lead will almost entirely come from developments in Europe. The possibility of negative sentiment from the flaring up Middle East/North African turmoil would only be AUD negative. For those looking to transfer EURO’s into Australian dollars, loading order can be advised as the last two retracement from the .7200 (1.3890) levels has been swift.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7377	.7400	.7600	.7353 - .7526
EURO/AUD	1.3554	1.31600	1.3510	1.3287 - 1.3600

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Monday 14th November 2011 5:15 PM (NZT)
This pair stayed within the expected range last week, albeit with the AUD under some pressure from the EURO. The wider market risk aversion seen when the Italian debt markets were imploding, affected the sentiment towards the AUD. The recovery late Friday and over the weekend has seen the AUD gap higher from the lows. The positive reaction to the Italian austerity budget vote and subsequent change in leadership, should see a little more stability this week. The RBA monetary policy meeting minutes release on Tuesday will be watched, as will RBA Governor Stevens speech on Thursday. In Europe the GDP numbers Wednesday and inflation data Thursday, will be the focus.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7481	.7400	.7600	.7423 - .7546
EURO/AUD	1.3367	1.31600	1.3510	1.3252 - 1.3472

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Monday 7th November 2011 5:15 PM (NZT)
Whilst off its highs, the AUD remains at somewhat elevated levels against the EURO. The pair was volatile last week as one would expect with the Greek debt debacle running its course. With both respective central banks cutting their cash rates, the EURO was softer after the ECB’s meeting as the move was largely unexpected. This week coming sees little in the way of economic data due for release in Europe. The focus will move from the Greek debt issues to the increasing funding pressures on Italy. In Australia the focus is provided by Thursdays employment numbers. Current levels still represent good value buying of EURO with AUD.  

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7527	.7400	.7600	.7463 - .7622
EURO/AUD	1.3285	1.31600	1.3510	1.3120 - 1.3399

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Monday 31st October 2011 4.50 PM (NZT)
The AUD initially rallied last week before softening into the start of the EU summit. This softness continued as the lower than expected Australian inflation numbers were released. The end of the EU summit and confirmation of the deal done to write down 50% of Greek debt saw the general market risk aversion reversed and this spiked the AUD higher against the EURO. Towards the end of the week the momentum waned and the pair steadied at close to the AUD highs. Today’s BOJ intervention to buy US dollars has seen the AUD underperform. Tomorrow’s RBA cash rate decision and Friday’s quarterly monetary policy statement will provide the focus in Australia. In Europe the ECB monetary policy decision on Thursday will provide the focus. Current levels still represent good value buying of EUR with AUD, from a historical perspective.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7520	.7400	.7600	.7421 - .7584
EURO/AUD	1.3298	1.31600	1.3510	1.3186 - 1.3475

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Monday 17th October 2011 4.50 PM (NZT)
The AUD saw mostly grinding appreciation against the Euro throughout the course of last week. The increased market appetite for risk couple with the better than expected Australian employment numbers provided the impetus for the move. This week sees the RBA monetary policy meeting minutes released on Tuesday. The European focus will remain on the debt crisis and the French/German plans to provide financial stability going forward. Detail of their plan is likely to start coming from the summit meeting in Brussels on the 23^rd Oct. Initial topside resistance comes in at the .7480 level (EUROAUD 1.3370 support), should the risk appetite continue.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7438	.7280	.7480	.7255 - .7453
EURO/AUD	1.3444	1.3370	1.3740	1.3417 - 1.3784

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Monday 10th October 2011 5.00 PM (NZT)
After some initial weakness against the EURO, the AUD saw some steady gains throughout the second half of last week. Ironically the move by European authorities to commit to a bank aid plan drove the change in sentiment, that saw the heightened risk aversion abate. This week sees the pair close to the .7350 resistance level (1.3600 support). The positive sentiment will have to continue on global markets, for the AUD to push through these levels. Initial Australian focus comes from the home loans data on Wednesday, ahead of the employment data on Thursday. In Europe the speech by outgoing ECB President Trichet will be watched on Tuesday, as will the inflation numbers on Friday.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7295	.7150	.7350	.7094 - .7324
EURO/AUD	1.3708	1.3605	1.3986	1.3654 - 1.4096

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Monday 3rd October 2011 5.05 PM (NZT)
The AUD remains under relative pressure from the EURO as the global growth profile continues to nosedive. The weekend’s news that Greece is likely to miss deficit targets has seen the AUD bounce from the lows with the .7150 level ( EUROAUD 1.3985) remaining the crucial level of AUD support. This week will prove interesting with both respective central banks in action. The focus starts in Australia with building and trade balance numbers ahead of the RBA announcement. Expect the RBA to maintain its 4.75% cash rate, but the tone of the statement remains the key. After Wednesdays Australian retail sales number it becomes the turn of the ECB on Thursday. A 25pt cut to the cash rate is expected. There was a reasonable chance of a 50 pt cut prior to the higher than expected Euro-zone inflation number on Friday.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7207	.7150	.7350	.7156 - .7326
EURO/AUD	1.3875	1.3605	1.3986	1.3650- 1.3972

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Monday 26th September 2011 6.42 PM (NZT)
The Australian dollar weakened considerably against the EURO through the course of last week. The softening global growth profile in Europe, the US and potentially China, provided the rapid path lower for the AUD. This week is light on economic data in both economies, and the lead will come from the plans that come from European financial authorities, and its effect on risk appetite. If the pair consolidates below the .7200 support (1.3890 resistance), its opens the way for another leg lower from the AUD.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7225	.7200	.7400	.7186 - .7532
EURO/AUD	1.3841	1.3510	1.3890	1.3277 - 1.3916

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Monday 19th September 2011 5.15 PM (NZT)
The AUD was under pressure from the EURO for most of last week. The AUD is widely seen as a barometer for global growth, and this is why it has suffered as the global growth prospects have been pared back in recent weeks. Initial support will come in at .7420 (EUROAUD resistance 1.3480), before the next level at .7380 (EUROAUD 1.3550). Whilst off the highs, current levels still represent good value buying of EURO with AUD. The focus for the week will be on the European debt situation primarily. For the Australian perspective, the RBA monetary meeting minutes on Tuesday will be closely watched.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7490	.7380	.7580	.7415 - .7688
EURO/AUD	1.3351	1.3195	1.3550	1.3007 - 1.3486

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Monday 12th September 2011 4:55 PM (NZT)
The AUD outperformed the EURO last week. Initially the demand was driven by the “wait and see” approach from the RBA to monetary policy, and the better than expected growth numbers. The ECB also have lost their tightening bias towards the cash rate, as the European economic outlook deteriorates. As the debt concerns rose towards the end of the week, the selling of the EUR intensified and drove the AUD higher. Whilst the AUD may well go higher and challenge the all time highs at .7735, current levels represent another opportunity at historically great value buying of EUR with AUD.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7638	.7530	.7730	.7422 - .7688
EURO/AUD	1.3092	1.2930	1.3280	1.3007 - 1.3473

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Monday 5th September 2011 6:05 PM (NZT)
The AUD saw almost straight line appreciation against the EURO for the bulk of last week. The respite for the EURO came as the general market risk aversion increased towards the end of the week. The debt situation in Europe is a constantly evolving beast and authorities have certainly not found an answer to the issues at play. This week may prove to be a pivotal point as the German constitutional court delivers a decision on the legality of  the extension of German bailout funds. With civil disharmony on the increase amongst contributing nations, it would appear that a clear path needs to be organized as soon as possible. To complicate matters for this pair is the busy Australian economic calendar this week. Tuesday starts it off with the RBA monetary policy decision and statement. Widely expected to leave the cash rate unchanged, the statement from Governor Stevens will be closely followed for hints on the timing of future policy changes. Wednesday sees the much anticipated second quarter GDP numbers released, and Thursday the monthly employment figures.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7479	.7350	.7650	.7280 - .7537
EURO/AUD	1.3370	1.3075	1.3600	1.3268 - 1.3736

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Monday 29th August 2011 6:35 PM (NZT)
The AUD outperformed the EURO last week as the appetite for risk returned as Chinese and US economic numbers beat expectations. Whilst the week’s trade was contained within the expected range, the appreciation of the AUD accelerated as the week wore on, and expect this to feed into this week. The focus on the capitalization of the European banking sector should see the EURO underperform in the short term. The focus in Europe for the week will be the Trichet speech due late Monday, and from there the economic data lead comes from Australia. Tuesday sees building numbers released. Thursday sees the double header of private capital expenditure and retail sales numbers. These will add colour to the domestic picture ahead of the RBA monetary policy decision next week. If the interest rate markets continue to pare back the expectations on the amounts of easing from the RBA before the end of the year, then the AUD should find support on dips. If initial resistance at .7450 is broken, around .7525 will be the next target.

	Current level	Support	Resistance	Last week’s range
AUD/EURO	.7299	.7250	.7450	.7204 - .7345
EURO/AUD	1.3700	1.3425	1.3800	1.3615 - 1.3881

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