On Wednesday the Euro advanced strongly against the Australian Dollar (EUR/AUD) as Reserve Bank of Australia Governor Glenn Stevens talked down the ‘Aussie’ and concerns over Japan weakened demand for riskier assets.
On Tuesday better-than-expected Eurozone trade balance data sent the Euro to Australian Dollar (EUR/AUD) exchange rate strengthened by around 0.21%. Disappointing data from the South Pacific nation has also seen the ‘Aussie’ (AUD) generally decline against its most traded currency rivals.
The Euro to Australian Dollar exchange rate is currently trending in the region of 1.4316.
Euro (EUR) Strengthens on Trade Balance Data
Monday has seen the common currency appreciate against the majority of its most traded competitors as a result of better-than-anticipated data from the Eurozone. The Eurozone’s trade surplus was forecast to increase from 8.6 billion to 18.0 billion, but the actual result reached 18.5 billion. The region’s seasonally adjusted trade surplus eclipsed the market consensus of a jump from 15.4 billion to 16.0 billion, with the actual result advancing to 17.7 billion.
‘The buoyant trade balance was caused by a 9%rise in exports, while imports only edged up 5%, and was likely helped by the Euro’s depreciation,’ stated FT.com.
The Euro to Australian Dollar exchange rate has fallen to a low today of 1.4324.
Euro (EUR) Extends Gains on Praet Speech
Peter Praet, one of the European Central Bank’s policymakers, gave a speech in London on Monday. Praet suggested that a sign of improvement, however faint, suggests that bank lending and the credit cycle in the Eurozone are at a turning point.
‘There are several factors that indicate credit dynamics in the Euro area have now reached a turning point,’ Praet said at a Credit Suisse conference. ‘Against that background, we expect the monetary policy initiatives we adopted in June and September to gain pace in the coming months.’
‘Aussie’ (AUD) Trending Lower on Poor Data
Australian economic data has printed comparatively poorly on Monday. Yearly New Motor Vehicle Sales declined from 0.6% to -0.5%, and the month-on-month data showed a declination from 2.8% to -1.6%.
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast to Soften
With both Australia’s Weekly Consumer Confidence Index and Conference Board Leading Index due to be published later on Monday evening, the Australian Dollar has the potential to advance against the common currency.
The Euro to Australian Dollar exchange rate has climbed to a high today of 1.4290.