Euro Australian Dollar (EUR/AUD) Exchange Rate Muted as Aussie Unemployment Steady
The Euro Australian Dollar (EUR/AUD) exchange rate rose and the pairing is currently trading at an inter-bank rate of AU$1.6308.
On Thursday, data revealed that Australia’s unemployment rate remained steady at 5.2% in May, despite the creation of 42,300 jobs.
This was the highest level of unemployment since August 2018.
May’s participation rate edged up to a record high of 66% from an upwardly revised 65.9% in April.
Figures show part-time employment jumped by 39,800 while full-time employment only edged up by 2,400.
However, this data comes just a day after the Reserve Bank of Australia’s (RBA) Assistant Governor Luci Ellis argued that unemployment would need to fall below 4.5% in order to see inflation rise to the bank’s target.
This, added with a slump in risk-appetite likely dampened sentiment in the Australian Dollar.
Euro (EUR) Flat as Eurozone Industrial Production Slumps
On Thursday morning Eurozone industrial production slumped by -0.5% in April after falling -0.4% in March.
This likely added to concerns of a prolonged industrial slump which could put further pressure on the European Central Bank (ECB).
The numbers confirmed that the slowdown in the manufacturing sector continued, and if it continues for long enough it will pose a threat to the bloc’s GDP growth.
The Euro was left muted as data revealed a -4.1% slump in car production weighed on the 19-country bloc’s industrial production.
Australian Dollar (AUD) Muted as China Will not Yield to US Pressure
On Thursday, China’s Commerce Ministry said that it would not yield to any ‘maximum pressure’ from the United States.
The Ministry stated that any attempts made by Washington to force Beijing into accepting a trade deal would fail.
Speaking to reporters, Ministry spokesman, Gao Feng said that China would not make any concessions out of principle.
This likely further dampened sentiment in the risk-sensitive Australian Dollar, however on Thursday afternoon the pairing remained muted.
Euro Australian Dollar Outlook: Will Disappointing Italian CPI Weigh on EUR?
Looking ahead to Friday, the Australian Dollar (AUD) could rise against the Euro (EUR) following the release of China’s retail sales.
If sales increase higher than forecast in May, it could buoy the risk-sensitive ‘Aussie’.
Meanwhile, Italy’s Consumer Price Index (CPI) could weigh on the single currency.
If inflation does not rise as high as expected, it could cause the Euro Australian Dollar (EUR/AUD) exchange rate to fall.