The EURAUD has advanced over 200 points after liftoff from its Nov 1st low @ 1.5512. Typically, the rise of this currency pair means the fall of the AUDUSD, but with the US dollar so weak, and gold rising (the Australian Dollar is a commodity currency that benefits from an increase in gold prices), this correlation is not likely to occur.
Currently, EURAUD, AUDUSD, and NZDUSD are all consolidating. If EURAUD is to continue it's advance, it may be due to its other counterpart, the EURUSD.
Should US Dollar weakness persist, we could see EURUSD gunning for 2.618 retracement @ the 1.4950 level. This would give some lift to the EURAUD cause. In the midst of all of this EUR strengthening, you could see AUDUSD sustaining its gains while making very minimal advances. Alternatively, if EURUSD and AUDUSD move up together, then EURAUD will consolidate until one or the other goes into a correction.
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