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Euro to Australian Dollar Exchange Rate Narrows on AUD Profit Taking

The Euro has remained down against the Australian Dollar today, but has at least closed the gap to trade at 1.4688. This weakening of the Australian Dollar comes after excessive profit-taking over the course of the day.

As well as widespread trading lowering the Australian Dollar’s value, the currency has also been harmed by talk of rising inequality between Australia’s richest and poorest citizens.

(First published 12:32, July 24th, 2017)

The Euro has been caught in a perfect storm today, with weakening Eurozone growth coming alongside a report that has boosted Australian Dollar trading.

  • EUR AUD rate drops to 1.4649 – AUD EUR trades up at 0.6825
  • Eurozone PMIs fall by more than forecast – Eurozone economies still growing strongly
  • Australian Dollar rallies on IMF outlook – Positive forecasts for AU trade partners raises Australian trader confidence
  • EUR losses may worsen on German confidence stats – AUD advance possible on ANZ confidence score

The Euro’s -0.3% dip to 1.4649 against the Australian Dollar has been the lowest rate so far this week, but better than the drop to 1.4442 seen on July 20th.

Euro Traders Unsettled by Slowing Eurozone Sector Growth

The Eurozone has put out a mixture of data today, with the main news showing slowdowns in both Eurozone and German economic activity.

Specifically, Eurozone and German PMIs for July have shown slowdowns in most cases, covering the manufacturing and services sectors as well as the overall composite.

The positive takeaway has been that growth still remains comparatively high and that the French manufacturing PMI actually rose above forecasts.

Commenting on the data, IHS Markit Chief Business Economist Chris Williamson said;

‘The July fall in the PMI indicates that the Eurozone’s recent growth spurt lost momentum for a second successive month, but still remained impressive.

The slowing pace of economic growth signalled by the surveys and the accompanying easing of price pressures adds to the belief that ECB policymakers will be in no rush to taper policy, and will leave all options open until the central bank sees a clearer picture of the sustainability of the upturn.

It’s too early to know for sure whether the economy has merely hit a speed bump or whether the upturn is already starting to fade. The evidence so far points to the former, with the economy hitting bottlenecks due to the speed of the recent upturn’.

Australian Dollar Rallies after IMF Upgrades Trade Forecasts

While direct Australian economic news has been lacking today, the Australian Dollar has still appreciated heavily thanks to the IMF.

The organisation has not directly talked up the AU economy, but has instead upgraded its projections for the Japanese and Chinese economies.

Both nations are key Australian trade partners, which bodes well for the Australian economy in the future.

EUR AUD Forecast: Euro could be driven down by German Survey Stats

The Euro may find itself devalued for the second day in a row on Tuesday. In the morning, IFO survey results for the German business climate, current conditions and expectations will come out; these are all predicted to show sliding levels of confidence.

Upcoming Australian news may be less high-impact, covering the weekly consumer confidence index. If this rises significantly then the Australian Dollar could extend its recent advantage against the Euro.

Current Interbank EUR AUD Exchange Rates

At the time of writing, the Euro to Australian Dollar (EUR AUD) exchange rate was trading at 1.4649 and the Australian Dollar to Euro (AUD EUR) exchange rate was trading at 0.6825.