Euro to Australian Dollar (EUR/AUD) Exchange Rate Trading at 1.4154
After posting extensive losses yesterday in reaction to a broad-based Euro sell-off, the Euro to Australian Dollar (EUR/AUD) exchange rate was trending in a narrow range on Friday.
If today’s Consumer Price Index for the Eurozone shows the positive revision predicted by economists, the Euro could edge slightly higher.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.4154
EUR/AUD Exchange Rate Down 2.2%
The Euro to Australian Dollar (EUR/AUD) exchange rate plummeted even further as the European session progressed, registering a daily decline of 2.2%.
The drop was largely due to the Swiss National Bank (SNB) removing its EUR/CHF cap of 1.20.
After the SNB announced its decision the Euro registered large losses against all of its main currency counterparts.
The Euro to US Dollar (EUR/USD) exchange rate initially fell by 1.8%, although it later recouped much of these losses.
Tomorrow’s final inflation data for the Eurozone could cause Euro movement if the figures are revised.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trading in the region of 1.4150
The Euro to Australian Dollar (EUR/AUD) exchange rate fell by over 1.2% on Thursday as the South Pacific currency was bolstered by better-than-forecast employment figures.
EUR/AUD Exchange Rate Dragged Lower by QE Bets, Jobs Stats
While a number of factors pushed the Euro lower against its peers, the Australian Dollar recorded broad-based gains off the back of an unexpectedly upbeat employment report.
The Euro to Australian Dollar (EUR/AUD) exchange rate tumbled after Australia was shown to have added 37,400 positions in December, considerably more than the 5,000 increase anticipated by economists.
November’s jobs gain was also positively revised to 45,000 – taking the unemployment rate down from an adjusted 6.2% to 6.1%.
The Euro to Australian Dollar (EUR/AUD) exchange rate brushed a low of 1.4271
Economist Paul Bloxham said of the news; ‘The strength in the official numbers suggests that the official survey is now starting to look more like the other indicators of labour market conditions, such as job advertisements and business surveys, which have been more positive for some time now. In recent months, we have argued that the other indicators were a better guide to labour market conditions than the official survey, given measurement issues. We continue to believe that the unemployment rate is close to, or past, its peak. We still expect that the RBA’s easing phase is done.’
However, an ANZ official had a less optimistic attitude to the report, asserting; ‘Despite today’s figures and as published earlier this morning, ANZ Research expects some further deterioration in the unemployment rate over 2015 to a peak of 6.6% in Q2, in response to softer domestic growth outcomes and expectations. While indicators of new labour demand have been increasing moderately, this is unlikely to be strong enough to counteract the flow of new workers into the economy and job losses in certain sectors. Today’s figures should be characterised as a pause on the gradual uptrend.’
‘For the RBA, today’s figures are encouraging. However the reality remains that the recovery in the non-mining economy has been slower to eventuate than expected and the sharp fall in energy prices creates more space for the inflation-targeting central bank to support the domestic economy. Our new forecasts as published this morning see the RBA lowering the cash rate to 2.0% by mid-2015.’
The Euro to Australian Dollar (EUR/AUD) achieved a high of 1.4487
The Euro, meanwhile, came under pressure after the European Court of Justice [ECJ] ruled on the legality of European Central Bank stimulus.
The ECJ asserted that the ECB’s commitment to rolling out further stimulus measures to shore up the Eurozone’s flagging economy is legal, which was taken as their giving the go ahead to quantitative easing.
After the ruling was announced the Euro softened against the majority of its currency counterparts.
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast
Today’s trade balance figures for the Eurozone could inspire additional EUR/AUD movement in the hours ahead.
Although Australia is not set to publish any additional economic reports before the weekend, the strength of the jobs report is likely to keep the ‘Aussie’ trending higher.
That being said, any shifts in commodity prices could have an impact on the Australian Dollar.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.4296
The Australian Dollar to Euro (AUD/EUR) exchange rate is currently trending in the region of 0.6993
The Euro to US Dollar (EUR/USD) exchange rate is currently trending in the region of 1.1756
The Euro to Pound Sterling (EUR/GBP) exchange rate is currently trending in the region of 0.7727