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Euro to Australian Dollar (AUD) Currency News: Australian Dollar surges after RBA Comments

A positive outlook for the Australian economy helped the ‘Aussie’ advance on its peers overnight, with the AUD to USD pairing brushing a four month high and the AUD to Euro exchange rate strengthening.

The Australian Dollar’s widespread gains were triggered by remarks issued by Reserve Bank of Australia Governor Glenn Stevens.

While speaking in Hong Kong Stevens asserted that there were positive indications that domestic consumption would help fuel national growth.

He stated that the positive outlook is ‘obviously a balance between the large negative force of declining mining investment and, working the other way, the likely pick up in some other areas of demand helped by very low interests rates.’

Although Steven’s has previously commented on the excessive strength of the ‘Aussie’ and the negative impact it could have on growth, in this instance he observed; ‘The lower exchange rate since last April and the improved economic conditions overseas also help’.

However, he did go on to add; ‘The long-running equilibrium of the exchange rate is probably lower and we have been quite consistent in saying that. It is worth giving some thought to where the currency was when terms of trade were soaring. We didn’t feel it was appropriate to try to limit that given the size of the event. […] Happily enough the currency is now well down off its peak. From here it really depends what you think the fundamentals will do’.

The Euro, on the other hand, was little-changed this morning as the German GfK consumer confidence measure came in at 8.5 for April, the same as recorded the previous month and in line with economist’s expectations.

Yesterday the common currency softened against almost all of its most traded currency counterparts following the publication of disappointing business sentiment data for Germany.

The Euro held these declines after European Central Bank President Mario Draghi stated that if downside risks to the Eurozone appear, the central bank is prepared ‘to take additional monetary policy measures that ensure our mandate is fulfilled.’

The ECB chief’s comparatively dovish remarks pushed the Euro to a three-week low against the US Dollar.

In a fairly quiet news day additional Euro to Australian Dollar movement may be minimal.

During Australasian trading fluctuations in the currency could occur as a result of China’s industrial profits report, but investors will also be looking ahead to Friday and the release of the Eurozone’s economic confidence data.

Euro (EUR) Exchange Rates

[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate , 
Euro,,US Dollar,1.3813,
Euro,,British Pound,0.8354,
Euro,,Australian Dollar,1.5000,
Euro,,New Zealand Dollar,1.6067,
Euro,,Canadian Dollar,1.5390,

As of 09:15 GMT