WELLINGTON: The Australian and New Zealand dollars drifted near multi-month highs versus the euro on Monday, with financiers awaiting key monetary data out of China and a most important policy declaration in Europe later this week.
Trading is expected to be subdued with US markets shut for a holiday. The beleaguered euro held at NZ$1.4831, just above a lifetime low of NZ$1.4778 struck on Friday. It stood at A$1.4060, having touched a four-month trough of A$1.3997 last week. ..
The main focus of the week is whether the European Central Bank will announce a stimulus package as expected on Jan. 22.
“Trader sentiment suggests that the ECB President Mario Draghi will succeed in his push to unleash a 500 billion euro quantitative easing (QE) package,” said Stephen Innes, a senior trader, OANDA Asia Pacific.
“In theory, it would be good for short-term risk appetite, and it could benefit sentiment-sensitive currencies like the Aussie.”
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