To consolidate in the range 1.1100-1.1150 – ING

Another decline in Eurozone manufacturing PMI yesterday and the composite index fell into contraction territory, notes FX strategist Chris Turner.

The best news for EUR/USD comes with US price data

“Yesterday’s ready PMI data took its toll on rate markets (two-year euro swap rates from 7bp) and the euro.”

“If it were not for the global inflationary environment, EUR/USD would look more vulnerable below 1.1100. For now though, we slightly favor this 1.1100-1.1150 range to hold, the best news for EUR/USD could come on Friday with US price data.”

“Like above, we continue to see the possibility of EUR/AUD trading lower and expect the trend to extend to 1.60. Help to move is constantly asking the Reserve Bank of Australia. The RBA certainly remains on inflation watch and looks unlikely to cut rates this year.”