Aud vs Euro

Discussion in 'Currencies' started by Michael Stevens, Aug 7, 2019.

  1. Michael Stevens

    Michael Stevens Member

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    The $ has weakened significantly on the Euro recently. With both the Eurozone & Straya both looking like they're heading into recessions how do you guys see the currencies performing against each other over the next 24+ months?
     
  2. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    The AUD is traded as a commodity currency, and also as a free-floating barometer of bullish/bearish sentiments about China.
    RBA cash rate are below 1% and signaled to fall further.

    The Euro has serious underlying issues, like negative interest rates.
    Hard Brexit is a near-certainty (which might actually be bullish for Euros) and Italy's government (makes Greece's government looks responsible) is close to collapse.
    However it is a much larger diversified economic base, the has accumulated a lot more capital. The ECB is far better prepared to weather the coming storm.

    If push comes to shove: I'd rather be holding Euros than Aussie Dollars if the goal is value preservation using the USD as a benchmark.
     

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