The Euro to Australian Dollar (EUR/AUD) and Euro to New Zealand (EUR/NZD) exchange rates gained in the first half of Monday’s European session as the European Central Bank (ECB) began quantitative easing (QE).
Central banks have began buying German bonds in a programme designed to boost growth in the Euro area.
Earlier… The Euro to Australian Dollar (EUR/AUD) and Euro to New Zealand Dollar (EUR/NZD) exchange rates have been on a downtrend this week, with the Euro hitting fresh lows against a host of currency majors.
The Euro sank to over an 11-year low versus the US Dollar (EUR/USD) on Thursday after European Central Bank (ECB) President Mario Draghi spoke at a press conference after a monetary policy announcement.
The ECB hopes a period of quantitative easing (QE) will boost Eurozone growth and pull the region out of its deflationary spiral.
Industry expert Xavier Smith commented: ‘It will have a material effect on a lot of European exporters. We’ll see a lot of benefits on the cost side for producers.’
In the week ahead several pieces of data could impact the EUR/AUD and EUR/NZD exchange rates; however, majorly significant Eurozone stats are in short supply.
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast
Sunday’s Chinese Trade Balance figures could influence both the Australian and New Zealand Dollar exchange rates as China is the largest trading partner of both Trans Tasman nations. Tuesday will continue on with the heavy Chinese data with Consumer Price Index (CPI) and New Yuan Loans figures published.
Australia’s NAB Business Confidence and Westpac Consumer Confidence will also emerge on Tuesday and will offer the ‘Aussie’ the opportunity for moderate movement.
Wednesday could be another day of reasonable fluctuations with Australian Home Loans, Investment Lending and Value of Loans stats out for release.
However, Thursday is likely to be a major day for Australian Dollar to Euro (AUD/EUR) exchange rate movement with Australian Employment Change and Unemployment Rate figures scheduled for publication.
Final German Consumer Price Index stats will be out on Thursday too and are likely to cause Euro movement if out of line with flash forecasts.
Euro to New Zealand Dollar (EUR/NZD) Exchange Rate Forecast
The Euro to New Zealand Dollar (EUR/NZD) exchange rate is likely to have several days of major movement with New Zealand data popping up throughout the week. Central bank news may also impact the pairing.
Monday begins the week with New Zealand’s Card Spending figures, but Tuesday lacks highly influential ecostats ahead of Wednesday’s central bank events.
The Reserve Bank of New Zealand (RBNZ) will announce its latest interest rate decision on Wednesday and is forecast to leave interest rates at 3.50% in March. However, any dovish tones from the RBNZ could easily pressure the New Zealand Dollar exchange rate lower.
The RBNZ recently announced it would be maintaining a period of stable interest rates for some time rather than continuing the rate hike cycle it began last year.
The Euro to Australian Dollar (EUR/AUD) and Euro to New Zealand Dollar (EUR/NZD) exchange rates will also be sensitive to any developments in the ongoing Greek negotiations.
The Australian and New Zealand Dollars will be extremely sensitive to any price changes in either iron ore or dairy as the largest commodity exports in the Tamsan.
On Saturday the Euro to Australian Dollar (EUR/AUD) exchange rate was trading in the region of 1.4049