Will RBA Send EUR/AUD to 1.5600

Will RBA Send EUR/AUD to 1.5600

The euro risk aversion rally sent EUR/AUD to fresh highs last week and although much of the gain have been erased the pair remains elevated. Tonight however the Aussie may get a boost from the RBA meeting. The RBA has been steadfastly neutral in its stance as it really does not want to lower rates any further to stoke the real estate bubble in the country.

Therefore with Aussie now well below its 7500 target the RBA is likely to reaffirm that it neutral bias and suggest that the yield will remain for the time being. That could attract carry trade flows back into Aussie and send EUR/AUD back below the 1.5600 level

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