Dislikedactually the AUD selling started as we failed to break above the 1640 barrier on GOLD too... thats one of the reasons for you...
BTW be careful on your theory that ECB lowering interest rates is a bad thing...
In technicality lowering interest rates promotes domestic borrowing to increase domestic spending which SHOULD increase spending...
however with the economic climate we have, people are risk averse so they prefer to save money than to borrow.... so lowered demand causes lowered supply, and lowered supply causes diminishing incomes...Ignored
As we can't see the immediate results of a I/R cut and have to wait for months or even a year to feel the impact and acquire the statistical data, investors are more likely to pull out their money and put it in places with higher I/R or similar I/R but with lower risk.
Now, what you are saying is legit but unless you have a TF of a year or more to allow the effects of the I/R cut to be felt you'll probably not want to hold the EUR from anywhere short to mid term.
This is the real make or break area for the aussie.
