The Euro (EUR) has risen by 0.6% against the Australian Dollar (EUR/AUD) today, its best faring since Monday.
German CPIs may Upset Current Gains if Forecasts Prove Accurate
The Euro’s (EUR) gains today come as global stock markets have recovered to a point close to their level before ‘Black Monday’ hit. This has largely restored the status quo in currency pairings; as the Euro was performing well at the end of last week, it has resumed this confident performance today, rising against all but the Swiss Franc (EUR/CHF). The US Dollar (USD) is fairly strong today, so the Australian Dollar (AUD) has been in a decline against the Euro and others.
This may be undone later on today, however, as the German CPI figures for July are being released and forecasts have alternatively been for fractional gains and even declines in some fields.
A further decline has been recorded in the Euro to Australian Dollar (EUR/AUD) exchange rate today as the shadow of ‘Black Monday’ continues to hang over the conventional rules of currency pairings.
EUR/AUD Exchange Rate News: Excess of Euros in Eurozone are no Cause for Celebration
The Euro to Australian Dollar (EUR/AUD) exchange rate has dropped today as a continuing negative response to the recovery of global stock markets has seen the common currency (EUR) perform poorly for the third day in a row. The Euro has fallen the hardest against the commodity currencies, seeing losses of more than -0.7% against the South African Rand (EUR/ZAR), the New Zealand Dollar (EUR/NZD), the Canadian Dollar (EUR/CAD) and the Australian Dollar (EUR/AUD). The Euro has also made a poor showing against the Indian Rupee (EUR/INR), falling by -0.7%.
The Euro has received a double whammy of bad results over the past 24 hours; European Central Bank (ECB) Executive Board member Peter Praet indicated in a speech yesterday that the ECB is willing to increase quantitative easing in the Eurozone if the inflation rate seems likely to remain low. The Eurozone Monetary Supply results for the three months to the end of July from this morning showed an increase in the figures, which conversely means that the Euro is now under downward pressure due to devaluation. Praet’s words bode ill for the Eurozone in this light, as further bond and debt purchases can only further lower Eurozone confidence.
‘Aussie’ Exchange Rate Climbs overall despite China closing the Door on Australian Iron Ore
The Australian Dollar (AUD) has continued its irregular rise against the Euro (EUR) and other currencies today, despite conditions being practically the opposite required for an ‘Aussie’ rally. The Australian Dollar has risen by over 0.5% against the Euro (AUD/EUR), the Pound Sterling (AUD/GBP) and the US Dollar (AUD/USD) today, with its only losses being a -0.2% dip against the Canadian Dollar (AUD/CAD) and a narrow trend against the New Zealand Dollar (AUD/NZD).
The Australian Dollar has been performing contrary to expectations today as while it has seen a strong overall performance, China (the biggest customer for Australian iron ore exports) will shut down some of the largest steel mills in the country from tomorrow until September 4th. This measure is designed to improve the quality of Beijing’s air in preparation for a commemorative parade by shutting down some of the largest producers of Chinese steel, particularly in Hebei province which produces almost 25% of all of China’s steel.
EUR/AUD Exchange Rate Forecast: German CPIs could Push Euro Back Up if Predictions Prove Inaccurate
Although circumstances are not ideal, the Euro (EUR) may yet gain against the ‘Aussie’ (EUR/AUD) tomorrow. A gradual stabilisation of the stock markets, coupled with a predicted dive in the Australian Dollar’s (AUD) value when China closes down the steel mills tomorrow may support the Euro, and if the German CPIs for August show an unexpected uptick in inflation, this potential gain may be furthered considerably.
Current EUR, AUD Exchange Rates
The Euro to Australian Dollar (EUR/AUD) exchange rate was trending in the region of 1.5772 and the Australian Dollar to Euro (AUD/EUR) exchange rate was trending in the region of 0.6343 today.