Goldman Sachs expects the euro to fall to its lowest level against the Australian dollar since early 2023. Europe is coping with energy price shocks, and the Australian dollar is benefiting from a favorable global macro environment. A team of strategists led by Kamakshia Trivedi wrote in the research report: “The global economy is growing steadily, the terms of trade in the energy and metals sector are once again favorable, and fiscal resilience is outstanding. At the same time, the highest policy interest rate among G10 countries has brought considerable interest income. All of these factors will support the Australian dollar.” At the same time, Europe is still “at the center of risks left over from the global energy shock”, terms of trade are under pressure, and the euro is facing challenges. “We believe that subsequent energy factors will bring the risk of a moderate weakening of the euro, compounded by limited disturbances at the local level of the euro, making it an extremely attractive financing currency for currencies including the Australian dollar.” It is recommended to short EUR/AUD with a target level of 1.5750 and a stop loss of 1.6520.

Goldman Sachs expects the euro to fall to its lowest level against the Australian dollar since early 2023. Europe is coping with energy price shocks, and the Australian dollar is benefiting from a favorable global macro environment. A team of strategists led by Kamakshia Trivedi wrote in the research report: “The global economy is growing steadily, the terms of trade in the energy and metals sector are once again favorable, and fiscal resilience is outstanding. At the same time, the highest policy interest rate among G10 countries has brought considerable interest income. All of these factors will support the Australian dollar.” At the same time, Europe is still “at the center of risks left over from the global energy shock”, terms of trade are under pressure, and the euro is facing challenges. “We believe that subsequent energy factors will bring the risk of a moderate weakening of the euro, compounded by limited disturbances at the local level of the euro, making it an extremely attractive financing currency for currencies including the Australian dollar.” It is recommended to short EUR/AUD with a target level of 1.5750 and a stop loss of 1.6520.