The Euro (EUR) has made an advance of 1.4% against the Australian Dollar (EUR/AUD) today, following on from the Australian Westpac Consumer Confidence score for January falling by -3.5%.
High Impact US Results due This Afternoon, Potential for Australian Dollar (AUD) Downtrend
In the near future, the EUR/AUD pairing is likely to be affected by this afternoon’s US Inflation Rate data for December, which at the time of writing was forecast to rise from 2% to 2.1% for the variant excluding Food and Energy and from 0.5% to 0.8% for the base field.
The Euro (EUR) has reduced its earlier loss against the Australian Dollar (EUR/AUD) to -0.7%, although this still remains indicative of the general poor performance given by the common currency today.
IMF Calls for ‘Business as Usual’ from Central Banks Including the ECB
In addition to being harmed by lacklustre domestic data, one of the other sources of pessimism today was the IMF’s World Economic Outlook report, which cut global growth forecasts for both 2016 and 2017.
Regarding the Eurozone, the institution urged the European Central Bank (ECB) to continue implementing monetary stimulus, which is likely to translate to the ever-dreaded quantitative easing in the case of the ECB.
The Euro (EUR) has fallen by a spectacular -1% against the Australian Dollar (EUR/AUD) today, something likely brought about by investor uncertainty caused by the earlier news that China is growing at the slowest rate in 25 years.
ECB Interest Rate Decision Due Thursday, Doubts over President Draghi’s Long-Term Control
With the European Central Bank (ECB) making its first Interest Rate Decision of the year on Thursday, investors are wisely cautious of committing when a highly dovish response is likely from ECB President Mario Draghi, who has gained something of a reputation for devaluing the Euro (EUR) dramatically with his speeches.
The Euro (EUR) has declined by -0.6% against the Australian Dollar (EUR/AUD) today, something of an unpredictable development given the recent news from of a certain Asian superpower.
Pricing In Prevents Australian Economic Fallout from Chinese GDP Results Today
The Australian Dollar (AUD) has actually rallied against most of its rivals so far today, which is externally an irregular response to China’s annual December Retail Sales and Q4 GDP falling compared to previous results.
However, despite Chinese growth dropping to the lowest level in 25 years, this outcome was largely priced in by economists around the globe, therefore the actual response to the news has been relatively muted. In addition, these minor drops in percentages could always have fallen a lot lower.
The Euro to Australian Dollar (EUR/AUD) exchange rate has trended in a tight range today, while in other pairings the common currency (EUR) has been in an overall state of decline. The ‘Aussie’ (AUD) has fared well, although this is mainly due to external factors.
EUR/AUD Exchange Rate News: VW Under Fire as New Year brings Old Problems
The Euro (EUR) has largely made negative movement against its rivals so far today, with a minor gain against the Swiss Franc (EUR/CHF) representing the only discernible positive movement for the single currency.
On an exceptionally slow news day, the Euro has mostly been moved by news concerning the Eurozone, given that all of the actual economic data has been low impact.
One of the more positive developments has been that French President Francois Hollande will be committing €2bn to reduce unemployment in the country, something welcomed by investors. However, this has been countered by the revelation that Volkswagen are facing a series of legal proceedings against them, which include vehicle owners in the US and the UK, the US Justice Department in response to violations of the Clean Air Act and shareholders of VW itself, who are seeking reparations for the massive devaluation of their shares when the emissions scandal first broke last year.
The Euro’s losses today have included a minor slip against the Australian Dollar (EUR/AUD), -0.4% against the Pound Sterling (EUR/GBP) and the Indian Rupee (EUR/INR) and -0.6% against the Polish Zloty (EUR/PLN). For investors, this performance against the ‘Aussie’ (AUD) is largely an unpleasant instance of deja vu for the common currency.
Australian Dollar (AUD) Maintains Level Heading despite Commodities Chaos
The Australian Dollar (AUD) has managed to avoid any spectacular declines today, despite the only recent Australian data has not being entirely supportive. The December New Vehicle Sales have fallen from 1.3% to -0.5% on the month and dropped from 6% to 2.2% on the year, though events elsewhere appear to have had a far more favourable effect on the ‘Aussie’.
These have been the price of gold per 100 ounces rising sharply in response to the current volatility of crude oil and the assertion of analysts that Australian mining giant Rio Tinto is likely to have met its iron ore export target for the previous year.
The Australian Dollar has advanced by 0.4% against the Euro (AUD/EUR) and the US Dollar (AUD/USD) today and has recorded a greater gain of 0.9% against the New Zealand Dollar (AUD/NZD).
EUR/AUD Exchange Rate Forecast: Chinese Influence due Tomorrow along with Eurozone Inflation Ecostats
The next movement in the EUR/AUD pairing is likely to come from the side of the ‘Aussie’ (AUD) in the near future, with the announcement of the Chinese December Industrial Production, Retail Sales and Q4 GDP results all due out early tomorrow. At the time of writing, forecasts were generally positive for the range of outcomes present, therefore if these predictions are met, the Australian Dollar can be expected to rally on the news.
Later on, the Eurozone will contribute to the pairing with the German December CPI results and later on, the overall Eurozone Inflation Rate stats for December along with Germany’s ZEW Survey of Economic Sentiment for January.
Expectations are for reprints on the most part, although the high impact ZEW score has pessimistically been forecast to slide from 16.1 to 7.9 points.
Current EUR, AUD Exchange Rates
The Euro to Australian Dollar (EUR/AUD) exchange rate was trending in the region of 1.5826 and the Australian Dollar to Euro (AUD/EUR) exchange rate was trending in the region of 0.6322 today.