EUR/AUD trades moderately higher after the ECB goes ahead with an expected interest-rate cut after its June meeting. Relatively robust Australian macroeconomic data continues to cap gains for the pair. Further, the RBA governor raises the possibility of raising interest rates if inflation fails to fall sustainably. EUR/AUD is trading up a tenth of a percent in the 1.6360s on Thursday after the European Central Bank announces a highly anticipated interest-rate cut of 0.
5% versus estimates of minus 0.3%, and the previous month’s figure was revised down. Whilst in the US, services sector data surprised to the upside, it was a different story in Europe, where May HCOB Services PMI was revised down to 53.2 from the 53.3 initial estimate. High services inflation has been a key reason why the ECB held back from cutting interest rates earlier. Australian data overall strong, RBA not for cutting In Australia recent data has been overall strong.