Homepage » News » EUR/AUD » Euro Flat against Australian Dollar as Eurozone PMIs Unsettle Traders

Euro Flat against Australian Dollar as Eurozone PMIs Unsettle Traders

While it has recently traded tightly, the Euro has improved on its earlier faring against the Australian Dollar. From an opening exchange rate of 1.4761 on Friday, the Euro has since risen to 1.4784.

This slight appreciation comes on the possibility that EU nationals could get a better deal on staying in the UK than that initially proposed by Theresa May.

After European Council President Donald Tusk stated that May’s proposal was ‘below our expectations’, the prospect has been raised of a revised suggestion from the UK. This could mean that both the UK and EU end up with more generous policies on citizenship and residency after Brexit, due to May’s intitial lowballing with EU officials.

(First published 12:26, June 23rd, 2017)

The Euro has made minor losses against the Australian Dollar today, following a mixed report of Eurozone economic activity levels.

  • EUR AUD rate drops to 1.4761 – AUD EUR rate rises to 0.6772
  • Euro unstable after mixed PMI results – Rising French jobs data fails to boost EUR
  • Australian Dollar advances on rising spending news – Traders optimistic about government involvement
  • Euro rise possible on German confidence stats – AU confidence data due Monday

The latest EUR AUD dip represents a minor setback for the Euro, as it is still trading around 1.4760, a one-week high.

Euro Flops on Mixed PMI Message

The latest Eurozone news has covered initial PMI readings for June. The PMIs, which measure manufacturing and services sector activity, showed a dip in German manufacturing.

The level of manufacturing rose in the overall Eurozone, but a scattered collection of results failed to provide lasting Euro support.

One of the biggest success stories from the data stack was that French job creation is near a ten-year high.

Australian Dollar Advances as Government Spending Stats Emerge

The Australian Dollar’s latest advance against the Euro has come after news of high government spending, as reported by ANZ.

The bank has highlighted that public sector spending makes up almost a quarter of AU GDP, coming in at 23%.

While this news is not always good for maintaining international credit spending, it has been received positively on the domestic front. Commenting on the matter, ANZ foresees further government spending intervention as likely in the years ahead;

‘With monetary policy currently having an anaemic impact outside of the housing sector, we see well-placed public sector spending as an important counter to the weaker parts of the private sector’.

EUR AUD Forecast: Euro Recovery may Come on German IFO Scores

Confidence data will be the first major Euro influencer next week, with the German IFO scores coming out on Monday.

If measures of confidence for the business climate, current conditions and expectations in June rise, then the Euro may also appreciate against the Australian Dollar.

The first Australian data to watch out for next week will be Monday’s ANZ Roy Morgan weekly consumer confidence index.

The last confidence score showed a dip from 112.9 points to 112.4, but over the past four readings the index has remained around the 112 mark.

If the score rises on Monday then the Australian Dollar could advance against the Euro early in the week.

Current Interbank EUR AUD Exchange Rates

At the time of writing, the Euro to Australian Dollar (EUR AUD) exchange rate was trading at 1.4761 and the Australian Dollar to Euro (AUD EUR) exchange rate was trading at 0.6772.