The Euro has made a moderate gain against the Australian Dollar today, climbing to an exchange rate of 1.5009.
- EUR AUD rate rises to 1.5009 – AUD EUR trades down at 0.6660
- Euro climbs as German factory stats recover – Greek unemployment starts to dip
- Australian Dollar drops despite trade balance data – Surplus grows in May
- Euro rally possible on G20 news – AUD could recovery on construction figures
On a bad week for the Australian Dollar, this latest Euro advance has put the EUR AUD pairing at a near-monthly high.
Forecast-beating German Stats Push Up EUR AUD Exchange Rate
Today’s notable Eurozone news has come from Germany, as well as the overall Eurozone. In the former case, the Euro has appreciated on news that German factory orders have risen from -2.2% to 1% in May.
This clear recovery has been praised by Dirk Schlotboeller of the German Chambers of Commerce, who has stated;
‘The German industrial sector is back in form and the decline in April was likely a one-off. Although increasing protectionism around the world is dampening the mood, business is going extremely well in Europe, Asia and also in the USA’.
Elsewhere, the Euro was further aided by a rising Eurozone retail activity measure for June, as well as a drop in Greece’s unemployment rate in April.
German news was not all good, however, with the construction PMI index showing a slight slowdown in June.
Rising AU Trade Surplus Fails to Trigger Australian Dollar to Euro Advance
While Australia has been gifted with some extremely positive domestic data today, this has failed to correlate with an AUD EUR rise.
The good news was that the national trade balance has risen in May, from 0.09bn to 2.471bn. This was better than the forecast 1.1bn result, although April’s result had been revised down, somewhat depleting the positive impact.
Euro Turbulence Possible on Incoming G20 Talks
The next major Eurozone event will be spread over Friday and Saturday, consisting of the 2017 G20 summit. Taking place in Hamburg, the meeting between international leaders is expected to address key issues such as NATO, North Korean nuclear aggression and the elephant in the room, US President Donald Trump.
If it looks like EU leaders can come to some form of agreement with the controversial leader then the Euro could appreciate, while signs of increasing divisions between the US and Europe may drag the EUR AUD exchange rate down.
The last Australian news of the week will be the AIG construction index for June. This previously showed a healthy level of growth, so a further expansion may push up the Australian Dollar’s value.
Current Interbank EUR AUD Exchange Rates
At the time of writing, the Euro to Australian Dollar (EUR AUD) exchange rate was trading at 1.5009 and the Australian Dollar to Euro (AUD EUR) exchange rate was trading at 0.6660.