Homepage » News » EUR/AUD » Euro to Australian Dollar Rate Advances after EUR-Boosting Confidence Data

Euro to Australian Dollar Rate Advances after EUR-Boosting Confidence Data

The Euro has risen by 0.4% against the Australian Dollar today following a significant improvement in Eurozone confidence.

  • EUR AUD rate jumps to 1.41 – AUD EUR trades down at 0.70
  • Eurozone confidence nears 10-year high – Italian industrial activity back in positive range
  • Australian Dollar drops on falling home loans – Will iron ore prices recover?
  • Further EUR AUD gains possible on ECB releases – AUD recovery possible on confidence stats

Although the Sentix Eurozone investor confidence rise from 21 to 23.9 seems fairly minor, it represents the best result in nearly a decade. The Euro was additionally supported against the Australian Dollar because the rise beat forecasts of a drop to 20.7 points.

Elsewhere, while Italian production hasn’t reached forecasts, it still rose out of negative ranges in February.

The Euro to Australian Dollar exchange rate has also been improved by comments from European Central Bank (ECB) policymaker Yves Mersch.

Speaking over the weekend, Mersch declared;

‘It’s true that we have a recovery that’s firming, that’s broadening both in geography and scope but it’s still frail. It’s mostly predicated on the continuation of the extraordinary monetary policy that we have launched but this is a support that cannot go on forever’.

Mersch’s implication that monetary policy tightening could be incoming has further contributed to rising Euro demand.

Today’s Australian data has been negative, with home loans in February falling from 0.4% to -0.5%.

Although forecasts are for a rise in iron ore prices after last week’s rout, this optimism has failed to improve AUD value.

The Euro could make further gains against the Australian Dollar today on comments from another ECB official, Vitor Constancio.

Further ahead, the first major EUR-moving news will be Tuesday’s Eurozone and German ZEW confidence surveys.

The Eurozone figure is predicted to drop slightly, but both German fields are expected to show rising confidence, which may boost the Euro overall.

In terms of upcoming Australian data, Tuesday and Wednesday’s confidence numbers have the potential to cause AUD exchange rate movement.

Current Interbank EUR AUD Exchange Rates

At the time of writing, the Euro to Australian Dollar (EUR AUD) exchange rate was trading at 1.41 and the Australian Dollar to Euro (AUD EUR) exchange rate was trading at 0.70.