Earlier this week the Euro to Australian Dollar (EUR/AUD) exchange rate plummeted as investors responded to an unexpectedly strong Ai Group Performance of Construction Index.
The measure, which was released on Monday, revealed a surge from 46.7 to 51.8 in June, putting the gauge firmly back into expansion territory.
On the same day German industrial production was shown to have fallen unexpectedly in May. As Germany played a decisive role in carrying the Eurozone out of recession, the patchy German figures published in recent weeks are beginning to weigh on the Euro.
As the week progressed the Australian Dollar was additionally supported by upbeat domestic Business Confidence and Business Conditions reports while an unexpectedly extensive decline in German imports and exports pushed the Euro lower.
The Euro to AUD exchange rate was little changed following the release of the Australian Westpac Consumer Confidence Index on Wednesday.
The measure climbed by 1.9% to 94.9 but the result wasn’t impressive enough for some investors.
That being said, the report did state; ‘While the July result was disappointing overall, there were some encouraging signs amongst the components of the Index. Views around family finances improved. The sub-index tracking assessments of ‘family finances relative to a year ago’ improved by 1.9%. The sub-index on the ‘one year outlook for finances’ posted an even stronger 12.3% rise although that still did not compensate for the record low reading post Budget for that component which plunged 23% in May. The sub-index tracking views on the ‘economic outlook over the next 12 months’ improved by 3.9% although the five year outlook sub-index deteriorated by 3.8%.’
Although there was a decided lack of economic news for the Eurozone on Wednesday, the Euro to Australian Dollar (EUR/AUD) exchange rate was able to stabilise during European trading and even recorded a modest advance of 0.1% ahead of the release of Australian employment figures.
The Euro to USD exchange rate was little changed following the publication of US Mortgage Applications figures. The data showed a 1.9% increase in mortgage applications in the week ending July 4th.
The publication of minutes from the Federal Open Market Committee meeting, due to take place at 19:00 GMT, could trigger extensive market movement if they prove to be excessively dovish or hawkish in tone.
During the Australasian session, Australia will release domestic employment data.
It is expected that the Australian economy added 12,000 positions in June after shedding 4,800 jobs in May. This result would see the Australian unemployment rate advance from 5.8% to 5.9%. If the data sparks a fresh bout of rate-cut speculation the ‘Aussie’ could tumble and the Australian Dollar to Euro exchange rate could push higher before the European Central Bank publishes its monthly report.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,
,US Dollar,1.3606,
Euro,,British Pound, 0.7955,
Euro,,Australian Dollar,1.4488,
Euro,,New Zealand Dollar,1.5470,
Euro,,Canadian Dollar,1.4520,
[/table]
