As another week draws to a close the Euro is preparing to post a five day gain against the Australian Dollar.
While the Euro has been supported by surprisingly upbeat manufacturing, services and business sentiment data for Germany, below forecast domestic inflation figures have put the Australian Dollar under significant pressure.
China’s uninspiring manufacturing report also took a toll on Wednesday and the ‘Aussie’ softened against almost all of its currency rivals.
With South Pacific markets closed on Friday for ANZAC day, additional Australian Dollar movement was limited and the asset is preparing to post five-day declines against the Euro, US Dollar and Pound.
The Australian Dollar might have been floundering this week but the same certainly can’t be said for its New Zealand counterpart. The ‘Kiwi’ surged on Thursday after the Reserve Bank of New Zealand increased interest rates, as expected by economists.
The Euro to NZD pairing slumped following the decision and largely retained these declines as the weekend approached.
However, while the New Zealand Dollar has been performing strongly, the currency’s upward trend may start to slow.
According to industry expert Annette Beacher; ‘We believe further NZD appreciation is likely to be capped within a cent of current rates as the tightening cycle is fairly priced.’
Although a lack of Eurozone news could restrain EUR/AUD movement today, some industry experts are expecting ‘Aussie’ weakness to persist into next week as investors wait Australia’s May federal budget.
Australian reports, including the nation’s performance of manufacturing index, could impact the Australian Dollar next week but volatility in the currency will also be dependent on international news, including China’s manufacturing PMI and the US non-farm payrolls report.
The only Eurozone data scheduled for publication today is French jobseekers figures.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,New Zealand Dollar,1.6145,