EUR/AUD Hits Record Low

The euro hit a record low against the Australian dollar yesterday, following pessimistic comments from German Chancellor Angela Merkel regarding the euro-zone. The EUR/AUD fell more than 65 pips during European trading, eventually reaching as low as 1.1852. The pair was then able to stage a modest recovery before stabilizing at the 1.1865 level. Against the US dollar, the euro sank more than 80 pips to reach as low as 1.2216. The common currency was able to correct itself, and eventually leveled out at 1.2250. Today, traders will want to continue monitoring any announcements out of the euro-zone. As we saw yesterday, comments from leaders in the region can have a significant impact throughout the marketplace. Any additional pessimism among German leaders could result in heavy euro losses. In addition, the euro could see some volatility as a result of US news. Should any of the US economic indicators scheduled to be released today come in better than forecasted, the euro could take additional losses against the greenback.

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