After manufacturing in China cooled in November, the Euro to Australian Dollar (EUR/AUD) exchange rate advanced by around 0.21%. However, the single currency has declined against many of its major peers as a result of less-than-impressive European data. The Euro to New Zealand Dollar (EUR/NZD) exchange rate, meanwhile, has softened by around -0.31% as a result of increased demand for milk.
The Euro to Australian Dollar exchange rate is currently trending in the region of 1.4661.
The Euro to New Zealand Dollar exchange rate is currently trending in the region of 1.5833.
Euro (EUR) Trending Lower on Poor Data
Monday’s European data has printed relatively disappointingly, causing the common currency to decline against the majority of its most traded currency rivals. One of the more disappointing prints was German manufacturing, which cooled from 50 to 49.5, moving below the mark which separates the acceleration and deceleration of growth.
The Italian Manufacturing PMI, Eurozone Manufacturing PMI and Italian Gross Domestic Product data all softened from previous figures.
‘Aussie’ (AUD) Declines on China’s Manufacturing Data
The Chinese Manufacturing PMI cooled beyond the median market forecast of a drop from 50.8 to 50.5 with a result of 50.3.
Compounding the ‘Aussie’ declination is less-than-ideal domestic data. Whilst Company Operating Profit increased from -7.5% to 10.2%; Inventories, Commodity Index, and the RBA Commodity Index SDR all declined from previous figures.
New Zealand Dollar (NZD) Advances on Milk Demand
Although China’s manufacturing issues impacted upon the ‘Kiwi’ (NZD) as well as the ‘Aussie’, the New Zealand Dollar avoided declination as a result of cool Japanese milk production. Increased demand for dairy products, as a result of US grain being too expensive for Japanese farmers to import, has caused prices to increase.
Euro to Australian Dollar and New Zealand Dollar (EUR/AUD/NZD) Exchange Rates Forecast to Soften
With the European Central Bank (ECB) due to make their interest rate decision soon, the Euro is likely to decline. This is because ECB officials have been preparing markets for the likelihood of the use of unconventional tools to shore up a sluggish Eurozone economy.
The Euro to Australian Dollar exchange rate has trended within a range of 1.4643 and 1.4779.
The Euro to New Zealand Dollar exchange rate has trended within a range of 1.5800 and 1.5992.