3:25 PM (NZT) The EURO has seen period  of intense pressure from the Australian dollar this week. Tuesday saw a rush to buy growth assets as better than expected economic data, good debt auctions in Europe, and soaring commodity prices saw a rush to exit “risk aversion” positions. This has pushed this pairing to the all time  high extremes by the AUD over the EUR. The ECB funding operations overnight took the sting out of the demand for risk assets. It illustrated to the extent that the European banks crave cash at the moment, which is indicative of very tight credit markets. Needless to say, patience will probably pay off for those looking to buy AUD with Euro’s. Those looking to buy Euro’s with AUD should consider their move quickly, as the festive market extremes often do not last into the new year. With little in the way of economic data next week, the lead will likely come from general market sentiment.
 
The current interbank midrate is:                                                            AUDEUR .7717                              EURAUD 1.2958
                                                               
The interbank range so far this week to date has been:                 AUDEUR .7600 - .7771               EURAUD 1.2868 – 1.3158