The Euro to Australian Dollar (EUR/AUD) exchange rate advanced by around 0.7% on Thursday morning.
Despite the fact that German Consumer Confidence failed to meet with expectations in October, the single currency edged higher versus many of its currency rivals. The appreciation is the result of positive sentiment towards the European Central Bank (ECB) after President Marion Draghi stated that he does not believe the time is right to expand quantitative easing. German IFO data, due for publication later on Thursday morning, will be likely to provoke Euro volatility.
Although the Shanghai Composite Index ended the session slightly up, thin trade was unable to significantly dent the drop on Wednesday. This has seen continued damp market sentiment and the Australian Dollar declined in response.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.6088.
EUR/AUD Conversion Rate Forecast to Advance despite Slower-than-Expected European PMIs
The Euro to Australian Dollar (EUR/AUD) exchange rate advanced by around 1.4% on Wednesday afternoon.
European ecostats failed to meet with market estimates on Wednesday which saw the European asset holding relatively steady versus its major peers. The German Composite PMI, Manufacturing PMI and Services PMI all failed to meet with expected growth but the results still showed robust expansion in the sectors. Similarly, the Eurozone Services PMI and Composite PMI just missed the respective market projections. Eurozone Manufacturing, however, did meet with the market consensus. The Euro avoided depreciation partly as a result of domestic data still showing growth in both German and Eurozone manufacturing and services sectors, but also because dampened market sentiment amid global economic slowdown concerns has seen heightened demand for safe-haven assets.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.5929.
AUD/EUR Exchange Rate Predicted to Decline after Shanghai Composite Index Ends Session Down
Although Australian economic data produced comparatively positive results, the ‘Aussie’ (AUD) declined versus most of its major peers. This can be attributed to China’s manufacturing output remaining in contraction territory. This suggests softer demand for raw materials which will have a significant impact on Australia’s export growth. In addition, the poor Chinese manufacturing print caused the Shanghai Composite Index to end the Asian session nearly 2.2% down, erasing any gains made in the past few days. This, in turn, caused market sentiment to dampen which also weighed on demand for the Oceanic asset.
The Euro to Australian Dollar (EUR/AUD) exchange rate dropped to a low of 1.5676 during Wednesday’s European session.
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast to Hold Gains ahead of German Consumer Confidence
With an absence of further economic data publications pertaining to both Europe and Australia to drive changes, the Euro to Australian Dollar (EUR/AUD) exchange rate is likely to hold gains for the remainder of Wednesday’s trade. Thursday is likely to see significant EUR/AUD volatility with several influential European economic data publications due for release. German Consumer Confidence, IFO Business Climate, IFO Current Assessment and IFO Expectations will all have the potential to provoke changes for the single currency. With a complete lack of Australian economic data on Thursday, ‘Aussie’ volatility will likely be subject to market sentiment and developments in the world’s second-largest economy.
The Euro to Australian Dollar (EUR/AUD) exchange rate climbed to a high of 1.5936 during Wednesday’s European session.