As RBA’s optimism last week was largely due to labour data, a stronger data tomorrow could boost the Aussie dollar. Short EUR/AUD if data surpasses expectations.
Bets on Fed to cut within the year increase, sell USD/JPY?
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With the market already pricing in a downgrade in eurozone economic projections, only a change in forward guidance could push euro lower. Short EUR/USD if Draghi were to mention a rate cut tonight.
As the market is already pricing in a rate cut today coupled with Governor Lowe’s optimism on Australia’s economy, EUR/AUD could fall further if GDP tomorrow is strong.