The Euro to Australian Dollar (EUR/AUD) exchange rate softened by around -0.44% on Tuesday morning.
In the wake of better-than-expected data out of China, the Australian Dollar strengthened versus many of its major peers. To add to the ‘Aussie’ upsurge is the continued rise in gold prices as traders seek safe-haven assets amid plummeting oil prices and geopolitical tensions. The common currency, however, avoided declination against many of its most traded rivals after French consumer confidence eclipsed expectations.
The Euro to Australian Dollar exchange rate is currently trending in the region of 1.4677.
After German economic data disappointed on Monday, the shared currency slumped against nearly all of its major peers. The unforeseen declination in German consumer prices amped fears regarding the necessity for European Central Bank policy makers employing expansive measures in order to prevent an economic crisis. The Australian Dollar, meanwhile, is steadily gaining against most of its currency rivals after gold prices rallied for the second consecutive day.
The Euro to Australian Dollar exchange rate is currently trending in the region of 1.4757.
Euro (EUR) Exchange Rate Dives on German Data
As explained above, the shared currency slumped versus its major peers after German consumer prices declines. The yearly EU-Harmonised German Consumer Price Index declined beyond the median market forecast of a drop from 0.5% to 0.2%, with the actual result falling to 0.1%. The year-on-year German CPI also softened further than the market consensus of a drop from 0.6% to 0.3%, with the actual result hitting 0.2%.
‘Downside surprises on inflation are far from over,’ said Jacques Cailloux, chief European economist at Nomura International Plc in London. ‘That’s probably going to be the very important theme for the year.’
The Euro to Australian Dollar (EUR/AUD) exchange rate has fallen to a low today of 1.4724.
Australian Dollar (AUD) Exchange Rate Gains on Gold
Despite the fact that the commodities market capped its largest annual decline since 2008, the ‘Aussie’ (AUD) advanced against many of its most traded currency competitors on Monday. This is a result of gold prices rising while traders invest in safe-haven assets amid the political crisis in Greece.
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast to Trend Lower
Although the Australian weekly consumer confidence data is due late on Monday evening, the Euro to Australian Dollar (EUR/AUD) exchange rate is likely to continue trending lower with sentiment towards the single currency dropping considerably.
The Euro to Australian Dollar exchange rate has reached a high today of 1.4862.