Goldman Sachs Research likes short EUR/AUD exposure in the near-term.

"Looking ahead, we see two-sided risks for the currency. Many of the macro tailwinds that have supported AUD this year remain intact, including resilient global growth, terms of trade tailwinds, a complicated but supportive China macro connection, notable fiscal resilience, and a strong carry offering. As a result, we see scope for further AUD outperformance with our preferred expression being short EUR/AUD," GS notes.

On the domestic front, however, downside risks from the housing and consumer sectors remain a concern. And while our economists have flagged the possibility of additional tightening if inflation surprises to the upside, they expect the RBA to hold policy until easing in 2H2027," GS adds.