After European data hit the mark on Thursday the single currency has avoided a downtrend based on speculation of an imminent debt-crisis. Amid heightened geopolitical tensions, anxieties over the pace of global economic growth and a rapid declination in commodity prices; both the ‘Aussie’ (AUD) and ‘Kiwi’ (NZD) have slumped against the majority of their most traded currency rivals.
The Euro to Australian Dollar exchange rate is currently trending in the region of 1.4666.
The Euro to New Zealand Dollar exchange rate is currently trending in the region of 1.6152.
Having plummeted from a long succession of disappointing domestic ecostats from the 18-nation currency bloc’s most powerful economy, the Euro curbed the trend after Wednesday’s German data met with the market consensus. The EU-Harmonised German Consumer Price Index equalled the initial estimate of 0.8%.
Australian data was generally positive on Wednesday although the ‘Aussie’ softened irrespectively. This can be attributed to cautious traders bolstering safe-haven assets and pulling away from high-yielding currencies.
Growing concerns over the slow pace of the global economic recovery has hindered the New Zealand Dollar. Additionally, the continued decline in commodities has had a detrimental effect on ‘Kiwi’ movement.
The Euro to Australian Dollar exchange rate has dropped to a low today of 1.4570.
The Euro to New Zealand Dollar exchange rate has fallen to a low today of 1.6034.
European data on Thursday has mirrored that of Wednesday’s in terms of its positive outcome. The Eurozone Consumer Price Index met with the initial estimate of 0.3% in September. The Core CPI improved upon the early estimate of 0.7%, reaching 0.8%.
The single currency has also benefitted from seasonally adjusted Eurozone Trade Balance data which eclipsed the median market forecast of a rise from 12.7 billion to 13.3 billion, with the actual result advancing to 15.8 billion.
A slight downtick in the Australian Consumer Inflation Expectation (from 3.5% to 3.4%) has compounded the ‘Aussie’ softening amid declination in the commodities market.
The New Zealand Dollar is faring a little better than its South Pacific counterpart due to positive economic data from late on Wednesday evening. However this hasn’t been enough to overshadow commodity cuts and geopolitical tensions. New Zealand’s Business Performance of Manufacturing Index increased from 57.0 to 58.1.
Forecast for the Euro to Australian Dollar and New Zealand Dollar Exchange Rates
A lack of data pertaining to both Australia and New Zealand on Friday is likely to see both currencies decline. As cautious trading, commodity cuts, geopolitical tensions and fears over global economic stagnation drive the currency market there is little chance that the South Pacific assets will make improvements.
European data on Friday has the potential to spark volatility for the single currency. Perhaps most important will be the Eurostat publication of the first GDP estimate after the ESA adoption in 2010.