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Euro Australian Dollar Exchange Rate Slumps as AUD Bull-Run Continues

The Euro to Australian Dollar exchange rate has fallen for the third day in a row. Although domestic data detailed a slight dip in German confidence, the Euro has still managed to gain against other peers.

  • Euro to Australian Dollar exchange rate (EUR AUD) falls to 1.41 – AUD EUR rate up at 0.70
  • Euro unsettled after German confidence drops – Import conditions continue to favour Germany
  • Australian Dollar aided by high demand for commodities – National inflation rises in Q3
  • Trio of ECB Speeches Incoming – Australian trading prices due tomorrow

Australian Dollar (AUD) exchange rates remained firm on Wednesday having been further supported by commodity prices and new inflation data.

Euro Exchange Rate News: EUR Stable despite Poor German and Italian Data

The Euro to Australian Dollar exchange rate has been trending lower for the third day running this week, although this is primarily due to the currently bullish state of the ‘Aussie’.

Elsewhere Euro exchange rates have been performing well, held up by news relating to European Commission President Jean-Claude Juncker.

Discussing the recently blocked CETA trade deal, Juncker has stated that he hopes for an agreement today between the Belgium region of Wallonia, which objects to the EU-Canada deal, and Belgium’s government.

Earlier, less supportive Eurozone results included the news that German GfK consumer confidence in November had fallen from 10 to 9.7. Figures also showed a negative result for Italian retail sales.

Euro Australian Dollar Exchange Rate Down as Commodities Boom Continues

Continuing with the week’s earlier positive performance, AUD has been in high demand again today, with the Euro Australian Dollar exchange rate falling and the ‘Aussie’ making significant gains against all of its regular peers.

In addition to the cost of iron ore and coal still remaining supportive for the Australian Dollar, the ‘Aussie’ has also been helped by the news that Australian Q3 inflation rose above forecasts on both the month and the quarter, to 1.3% and 0.7% respectively.

Other AU news has focused on Reserve Bank of Australia (RBA) Chief Information Officer Sarv Girn, who has talked about the risks of electronic attacks on central bank systems. Highlighting just how many digital intrusions the RBA faced on a daily basis, Girn said;

‘Our external perimeter like most other organisations, is faced with a barrage of scans and probes; in fact we have one probe every two seconds’.

euro notes and flag

Future EUR AUD Forecast: Possible Volatility for Euro on ECB Remarks

The Euro Australian Dollar exchange rate is likely to experience further movement as the week continues.

Wednesday and Thursday’s economic events will mainly consist of European Central Bank (ECB) speeches, which are due over today and tomorrow from Michael Diemer, Yves Mersch and Peter Praet. Should monetary policy come up, expect significant Euro movements based on the tone used by the policymaker.

After today’s high-impact inflation results, the Australian Dollar doesn’t seem set to move much until Friday morning; before then, early Thursday will see the release of export and import prices for Q3, which previously came in positively and negatively, respectively.

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.