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Euro Australian Dollar Exchange Rate Unchanged despite Soaring Fed Rate Hike Odds

  • Eurozone trade surplus and ZEW score increase
  • Australian Dollar weakens after iron ore price drop – RBA minutes bring jobs market concern
  • Slow Eurozone data day incoming – Australian vehicles sales stats due

The Euro has failed to make much in the way of positive progress today, presumably owing to ongoing fears about how the European Central Bank (ECB) will react to Donald Trump’s election as US President.

The last major Eurozone news of the day was that September’s trade balance had expanded, along with a rise in the ZEW economic sentiment index for November.

With the Federal Reserve odds of hiking the US interest rate in December currently around 90%, the Australian Dollar has failed to make any real advances today.

Tomorrow’s Eurozone data will mainly consist of the ECB non-monetary policy meeting, which may generate a slight shift in the EUR AUD exchange rate.

(Last updated November 15th 2016)

Trading today has been poor for the Australian Dollar, owing to the previously rallying iron ore price finally dipping.

Euro Exchange Rate News: EUR AUD Advances despite German GDP Upset

In spite of Germany’s Q3 GDP growth rate flash being revised downwards on the quarter and the year, the Euro has rallied across the board today, rising by 0.6% against the Australian Dollar and by 1% against the Pound.

The latest news out of the Eurozone has been mixed, as while German GDP has disappointed, Spain and France has posted positive inflation rate stats for October and the Netherlands GDP growth rate results for Q3 have risen annually and on the quarter.

Australian Dollar to Euro Exchange Rate Slides along with Iron Ore Prices

The Australian Dollar’s luck in the commodities market has run out today, as despite previous iron ore prices rising considerably to hit record highs, the latest price movements have been in a downwards direction, especially when it comes to Chinese futures.

An additional upset for the Australian Dollar against the Euro has come from the latest Reserve Bank of Australia (RBA) minutes, which have been optimistic overall but highlighted indecision about the incomes.

Quoting the minutes, the issue has been that;

‘Members noted that there was significant uncertainty about the outlook for consumption growth given uncertainty about households’ expectations of their income growth and the influence of these expectations on their spending and saving decisions. This was particularly pronounced for households with significant debt’.

Euro exchange rate forecast

Future EUR AUD Forecast: Further Euro Gains Predicted if Q3 EZ GDP Rises

The day’s next Eurozone data will be out shortly, consisting of the second estimates for the Q3 GDP growth rate results. On both the quarter and year, positive reprints are expected.

More progressive Eurozone news is expected to consist of the September trade balance result, as well as the November ZEW economic sentiment index. Respectively, a trade surplus expansion is expected, along with a sentiment index increase from 12.3 to 15.

From Australia, ahead of Thursday’s high-impact jobs figures, input is expected to come from Wednesday’s early new motor vehicle sales for October; both the monthly and annual results previously came in positively.

Current Interbank Exchange Rates

The Euro Australian Dollar (EUR AUD) exchange rate was trending in the region of 1.42 and the Australian Dollar Euro (AUD EUR) exchange rate was trending in the region of 0.70 today.