UPDATE
The Euro to Australian Dollar (EUR/AUD) exchange rate advanced by nearly 0.4% on Friday morning, whilst the Euro to New Zealand Dollar (EUR/NZD) exchange rate advanced by around 0.2%.
In general, the shared currency declined versus most of its major peers on Friday morning. This is due to poor economic data from France and Germany, and in the Eurozone as a whole. The preliminary figures for Eurozone and German Manufacturing, Services and Composite PMIs all failed to meet with median market expectations.
The Australian Dollar dived versus its major rivals in response to contracting factory output from China. In addition, falling gold and iron ore prices weighed on demand for the high-yielding Australian Dollar. The New Zealand Dollar, meanwhile, also declined thanks to poor economic data out of China. Falling dairy prices also caused ‘Kiwi’ (NZD) headwinds.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.4990.
The Euro to New Zealand Dollar (EUR/NZD) exchange rate is currently trending in the region of 1.6637.
Yesterday…
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast to Strengthen on Iron Ore Prices
The Euro to Australian Dollar (EUR/AUD) exchange rate edged higher by around 0.2% on Thursday morning.
In response to news that Greek MPs accepted terms to unlock financial aid, the shared currency recovered some of the losses accrued as a result of months of Greek uncertainty. Prime Minister Alexis Tsipras had to rely on the opposition vote to pass the bill but stated openly that he would not have accepted such a deal if the Hellenic nation had more of a choice. With Tsipras’ authority waning, he has vowed to do everything in his power to sweeten the deal during final negotiations.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.4837.
The Australian Dollar, meanwhile, softened versus many of its currency competitors despite increased demand for high-yielding assets. The ‘Aussie’ (AUD) depreciation can be linked to bearish commodity prices. The handful of commodities which have an impact on ‘Aussie’ movement have declined in value by approximately 5% since the beginning of June. Of particular detriment were falling iron ore and gold prices.
The Euro to Australian Dollar (EUR/AUD) exchange rate was trending within the range of 1.4801 to 1.4862.
Euro to New Zealand Dollar (EUR/NZD) Exchange Rate Forecast to Decline after RBNZ Cuts OCR Rate
The Euro to New Zealand Dollar (EUR/NZD) exchange rate softened by around -0.4% on Thursday morning.
In response to the news that Greek MPs accepted the terms for unlocking aid, Analyst Andrew MacFarlane told clients this morning; ‘Greece approved the second set of measures demanded by creditors this morning; formal negotiations on a new bailout programme can now begin, although risks remain…including differences between the IMF and European creditors on debt relief as well as concerns over whether the Greek Government will be able to implement the socially unpopular deal.’
The Euro to New Zealand Dollar (EUR/NZD) exchange rate is currently trending in the region of 1.6443.
Despite the fact that the Reserve Bank of New Zealand (RBNZ) cut the official cash rate (OCR) by 25 basis points, the ‘Kiwi’ (NZD) advanced versus its currency rivals. This is due to the fact that many traders had priced-in a larger cut. In addition, the RBNZ cash rate remains higher than that of its Oceanic counterpart.
The Euro to New Zealand Dollar (EUR/NZD) exchange rate was trending within the range of 1.6370 to 1.6561 during Thursday’s European session.