- Euro appeal restored by ECB accounts – Inflation targeted by central bank
- Australian Dollar soft slides as US Dollar soars – Reduced US claims seen
- German industrial production stats out tomorrow– Australian construction data expected tonight
The Euro has remained a solid option against the ‘Aussie’ today, thanks to positive news from the ECB and the overall weakness of the Australian Dollar.
The big Eurozone news of the day, the ECB monetary policy meeting accounts, have shown that the central bank will do ‘whatever it takes’ to raise historically low inflation in the single currency bloc, which has once again raised the overall appeal of the Euro.
The Australian Dollar has only been able to advance against the weakened Pound today, due to the rising US Dollar pushing down demand for the more risk-linked ‘Aussie’. This advance has been brought about by US jobs data, were claims made in late September and early October were shown to have fallen during both periods.
Looking ahead, the next Australian ecostat remains tonight’s construction index for September, while tomorrow morning, the Euro could be shifted by a positively-predicted German industrial production result for August.
(Last updated October 6th, 2016)
The Australian Dollar has been making opposite movements against its regular peers, having fallen across the board on debt-based concerns.
Euro Exchange Rate News: German Contributions Restore EUR Demand after Declining PMIs
The Euro has received a shot in the arm from Eurozone data today, which has enabled it to shake of many of the losses recorded yesterday; these were triggered by declining Eurozone composite and services PMIs, as well as falling figures for retail sales in the single currency bloc.
The latest does of support has come from Germany, where against predictions of declines or minor increases, both the August factory orders and September construction PMI results have climbed considerably, thereby restoring confidence in the single currency compared to its riskier peers.
Offering a positive response to the German PMI was IHS Markit economist Oliver Kolodseike, who said;
‘German construction activity increased at the end of the third quarter and encouragingly the rate of growth accelerated further from June’s recent low. Residential building was the main pillar of growth, as has been the case throughout most of the past year-and-a-half’.
Elsewhere in the Eurozone, the September retail PMI has damagingly fallen into contraction territory from 51 points to 49.6.
Australian Dollar Exchange Rate Declines after IMF’s AU Debt Warning
The Australian Dollar has found itself in low demand during trading today, on account of a recent forecast offered by the International Monetary Fund (IMF). Along with a statement that global debt levels were at a record high, the IMF also highlighted that levels of private debt in Australia are growing rapidly, which raises the risk of a financial crisis or recession.
Domestic data out of the country has covered the August trade balance, which has shown a slight deficit reduction from -2.12bn to -2.01bn
Future EUR AUD Forecast: ECB Accounts due Today, EUR Losses Likely on Easing Talks
The Euro could be unsettled against its peers in the near-term, when the European Central Bank (ECB) monetary policy meeting accounts come out in the early afternoon.
While the Eurozone has recently shown signs of a recovery, voiced concerns from the central bank could devalue the Euro, as this could signify further monetary policy easing coming into effect in the future.
From Australia, the next data release to watch out for will come during the night, when the AiG construction index for September comes in; as it stands, a potentially AUD-boosting rise from contraction to growth (from 46.6 to 50.6) has been forecast.
Current EUR, AUD Exchange Rates
The Euro Australian Dollar (EUR AUD) exchange rate was trending in the region of 1.4747 and the Australian Dollar Euro (AUD EUR) exchange rate was trending in the region of 0.6784 today.