US Treasury's Bond Buyback Boosts Euro and Aussie Amid Downside Pressure
The US Treasury has doubled its long-dated bond buyback operations to at least $4 billion per auction from September 9 to November 4, a move that increased official demand for US government debt and led to lower long-term yields.
This decision contributed to a decline in the US dollar index, making both the euro and Australian dollar more attractive to currency markets. However, mixed Australian PMI data affected relative shifts between the two currencies, with the EUR/AUD pair trading below key moving averages and exhibiting strong sell signals from multiple momentum indicators.
The technical outlook for EUR/AUD suggests a high likelihood of further declines toward A$1.6251 to A$1.6415 in the next 2 to 3 days. The baseline scenario favors sideways consolidation within an established corridor, with any upward movement above A$1.639 considered improbable unless a decisive break occurs.