The Euro (EUR) has made minor gains against the Australian Dollar (EUR/AUD) today, owing to the German Factory Orders for September printing negatively and the German Construction PMI for October moving closer to contraction.
ECB’s Draghi’s Speech Likely to Influence EUR/AUD Pairing in Near Future
The next event likely to shift the Euro (EUR) will be a speech from European Central Bank (ECB) President Mario Draghi; speaking in Milan, Draghi is expected to vocalise his opinion of the current economic state of the Eurozone. Given today’s poor German results, it may not be an entirely optimistic evaluation.
The Euro (EUR) has fallen against the Australian Dollar (EUR/AUD) by -0.3% today, mainly due to the German and Eurozone Composite and Services PMIs for October both declining against forecasts of stagnation.
Chance for German Support Tomorrow ahead of Later Australian Construction Data
As with today, Germany will play a deciding role in either supporting or damaging the Euro’s prospects tomorrow, as German Factory Orders for September will be out along with German (and other nation) Retail PMIs for the period of October. Far later on, the Australian October AIG Performance of Construction Index will be out.
The Euro to Australian Dollar (EUR/AUD) exchange rate has declined today along with most other pairings, owing to weak Eurozone economic publications softening the single currency.
EUR/AUD Exchange Rate News: ‘No es Bueno’ Results from Spain reduce Euro’s Appeal Today
The Euro (EUR) has fallen overall today, owing to data from Spain diminishing yesterday’s mostly positive Manufacturing PMI results from Italy, Germany and the Eurozone. The Spanish Unemployment Change and Consumer Confidence figures for October were the major points of detriment, as the former rose from 26.1k persons to 82.3k, while the latter dropped from 106.1 to 99.8.
The Euro’s most notable losses today have been by -0.2% against the Pound Sterling (EUR/GBP), -0.3% against the US Dollar (EUR/USD) and the Japanese Yen (EUR/JPY) and -0.6% against the Australian Dollar (EUR/AUD). The only real rise for the common currency has been by 0.3% against the New Zealand Dollar (EUR/NZD).
RBA’s Interest Rate Freeze Triggered AUD Rally against EUR and Others Today
The Australian Dollar (AUD) has had a virtually opposite performance to the Euro (EUR) today, rising against all of the competition by stable amounts. This has mainly been caused by the earlier Reserve Bank of Australia (RBA) Interest Rate Decision for November, which resulted in a freeze at 2%, the rate that was reached on May 5th this year.
In a statement, RBA Governor Glenn Stevens said that: ‘Australia’s terms of trade are falling. In Australia, the available information suggests that moderate expansion in the economy continues. While GDP growth has been somewhat below longer-term averages for some time, business surveys suggest a gradual improvement in conditions over the past year.’ Despite the ‘slow and steady’ nature of the statement, economists noted that further cuts were by no means ruled out before the end of the year.
The Australian Dollar has advanced by 0.6% against the Euro (AUD/EUR) today and has seen additional gains of 0.5% against the Canadian Dollar (AUD/CAD) and the Pound Sterling (AUD/GBP), with a 0.9% rise against the New Zealand Dollar (AUD/NZD) being the highlight for the ‘Aussie’ today.
EUR/AUD Exchange Rate Forecast: Speech from ECB’s Draghi due Today, along with Australian Services Index
The next piece of data due to affect the EUR/AUD exchange rate will come from the Eurozone, with ECB President Mario Draghi giving a speech in Frankfurt today on the Eurozone economy. Naturally, investors will be looking for signs of a planned hold on the current level of quantitative easing (QE), given that one of the Euro’s rallies yesterday came from optimism over a freeze for QE in the Eurozone.
Australia’s input for the pairing will come a lot later on, with the AIG Performance of Service Index for October being announced; at the time of writing, no forecasts had been made for the outcome.
Current EUR, AUD Exchange Rates
The Euro to Australian Dollar (EUR/AUD) exchange rate was trending in the region of 1.5287 and the Australian Dollar to Euro (AUD/EUR) exchange rate was trending in the region of 0.6543 today.