Following the European Central Bank’s (ECB) February meeting, the aussie printed lows against the euro since September 2021. AUD softness may persist into March, with fresh lows since August 2021 likely, but analysts at Westpac expect the aussie to recover in the second quarter.

ECB change of tune vs RBA and return of equity jitters suggests AUD softness 

“The RBA’s comparatively dovish rhetoric and jittery equity markets suggest A$ softness persists into March, with fresh euro highs since August 2021 quite possible.” 

“By Q2, we expect EUR/AUD to fade to the 1.54-1.56 area, as Australian growth accelerates into a likely August RBA rate rise.”