The Euro to Australian Dollar (EUR/AUD) exchange rate has dropped slightly since yesterday’s high of 1.3%, but the common currency remains dominant in the pairing.
Impending Conclusion to Greek Bailout sees Euro (EUR) Continue Hawkish Performance
The Euro (EUR) has gained against the Australian Dollar (EUR/AUD) by 1.1% today, and has remained strong against all of its competitors as well. This comes with an update from Greece that talks over the bailout package are set to be wrapped up on Thursday night. Such an imminent conclusion to such lengthy negotiations has renewed optimism in the common currency, and if everything goes to plan, the Euro is expected to remain hawkish against its rivals. The Australian economy received good news today after the Westpac Consumer Confidence Score and Index for August both saw growth above forecasted results, but this wasn’t enough to reverse the current downtrend of the ‘Aussie’ (AUD) against the Euro (AUD/EUR).
The Euro has gained against the Pound Sterling (EUR/GBP) by 1.1% today, and has seen a far greater rise of 1.8% against the Indian Rupee (EUR/INR).
The Euro (EUR) has increased its advantage against the Australian Dollar (EUR/AUD) since yesterday, as a series of events combined to push the common currency higher in the pairing.
Euro to Australian Dollar (EUR/AUD) Exchange Rate Unharmed by Disappointing German Economic Survey
The Euro (EUR) has risen against the Australian Dollar (EUR/AUD) by 1.3% today, despite the German ZEW Survey of Economic Sentiment for August seeing a drop below the previous total and the forecast figure. The result came in a 25 points, whereas the previous total was 29.7 and the expected figure was 31.9. In spite of this, the Euro has gained by 0.8% against the Indian Rupee (EUR/INR) and the South African Rand (EUR/ZAR) today, and seen a larger increase of 1.1% against the New Zealand Dollar (EUR/NZD). This is due to positive news from Greece; after two weeks of talks and a gruelling 23-hour session between Greece’s creditors and the International Monetary Fund in Athens, a bailout agreement has at last been reached, and is expected to be finalised in the next few days.
The Australian Dollar has had far worse news this morning; the Chinese Yuan (CNY) has been devalued to a 3-year low by the People’s Bank of China, following underwhelming results from the Chinese economy. This has sent the ‘Aussie’ plummeting by more than -1.2% against the Euro (AUD/EUR), the Pound Sterling (AUD/GBP) and the US Dollar (AUD/USD). The Australian currency also fell by -0.9% against the Canadian Dollar (AUD/CAD), and has only been able to make a real gain of 0.5% against the Chinese Yuan (AUD/CNY).
The Euro (EUR) has gained significantly against the Australian Dollar (EUR/AUD) today, while the ‘Aussie’ (AUD) has declined against virtually all of its rivals.
Euro to Australian Dollar (EUR/AUD) Exchange Rate News: Euro is bolstered by Optimistic Statements from Greece
The Euro (EUR) has risen against most of its competitors today, despite the Eurozone Sentix Investor Confidence figure for August coming in lower than both the previous result and the forecast figure. The Euro rose by over 0.5% against the Canadian Dollar (EUR/CAD) and the South African Rand (EUR/ZAR) and saw a greater gain of more than 0.9% against the Australian Dollar (EUR/AUD) and the New Zealand Dollar (EUR/NZD).
The Sentix figure came in at 18.4, a -0.1 point drop on the previous result, and a significant shortfall compared to the forecast increase up to 20.3. However, earlier on an unnamed Greek official made the statement that ‘Efforts are being made to conclude the negotiations. The horizon is by Monday night or early Tuesday’. This strengthened the Euro’s performance considerably and renewed hope for the future of Greece in the Eurozone.
Australian Dollar to Euro (AUD/EUR) Exchange Rate Dives as Chinese Demand Dries Up
In stark contrast to the Euro’s (EUR) gains today, the Australian Dollar (AUD) has fallen across the board, seeing only a 0.6% gain against the New Zealand Dollar (AUD/NZD). The ‘Aussie’ has dropped against the Canadian Dollar (AUD/CAD) and the Pound Sterling (AUD/GBP) by -0.4% today, and has seen greater losses of over -0.5% against the Chinese Yuan (AUD/CNY) and the US Dollar (AUD/USD). The greatest loss for the ‘Aussie’ today has been against the Euro (AUD/EUR), with a fall of -0.9%.
This comes after last Friday’s report by the Reserve Bank of Australia (RBA) that future demand for Australian commodities is likely to weaken. This blow was worsened today when the Chinese yearly CPI and PPI figures for July both brought disappointment. The CPI figure showed a minor 0.2% increase, while the PPI result saw a -5.4% decline.
Euro to Australian Dollar Exchange Rate Forecast: EUR/AUD Uptrend May Continue after Greek Bailout Agreement is Reached
The Euro (EUR) stands to gain significantly this week, most immediately from a successful conclusion to the Greek bailout talks. Given the timeframe provided, the impact of a viable agreement will likely be seen within the next 24 hours. Further on in the week, the German ZEW Survey of Economic Sentiment for August (released tomorrow) is expected to show a minor increase, and the same is also true for the German and Eurozone Q2 yearly GDP figures that are out on Friday.
For the ‘Aussie’ (AUD), however, the coming week is less bright. The NAB July Business Confidence figure (out tomorrow) has been forecast for a slight decline and predictions are mixed for Wednesday’s Westpac Consumer Confidence data. The Australian Dollar’s performance is likely to be heavily dependent on the Chinese economy; China’s Industrial Production and Retail Sales figures for July (out on Wednesday) are predicted to have the biggest impact on the ‘Aussie’ this week.
Current EUR, AUD Exchange Rates
The Euro to Australian Dollar (EUR/AUD) exchange rate was trending in the region of 1.4873 and the Australian Dollar to Euro (AUD/EUR) exchange rate was trending in the region of 0.6726 today.