UPDATE
The Euro to Australian Dollar (EUR/AUD) exchange rate declined by around -0.3% on Friday morning.
The single currency edged lower versus its major peers on Friday morning in response to less-than-ideal German and French growth data. French Gross Domestic Product stagnated in the second-quarter, whilst German growth failed to meet with median market projections. The Euro depreciation was somewhat slowed, however, after Greek MPs voted to accept the terms of the third bailout package.
Now that Greek MPS have accepted the terms for the much-needed aid package, market sentiment improved. In addition, easing concerns regarding Yuan devaluation has seen heightened demand for risk-correlated currencies such as the Australian Dollar.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.5085.
Yesterday…
Euro (EUR) Exchange Rate Forecast to Tick Higher against the ‘Aussie’ (AUD) Despite Fears of Flawed Greek Bailout Deal
The Euro to Australian Dollar (EUR/AUD) exchange rate ticked higher by around 0.2% on Thursday morning.
Wednesday saw the single currency surge versus its major competitors after Greek officials agreed terms of the third bailout package with creditors and Eurozone representatives. The appreciation was the result of easing fears that the Hellenic nation would fail to meet with a payment due to the European Central Bank (ECB) on August 20th.
However, Thursday has seen the Euro cool versus its major rivals amid speculation that the terms of the deal are flawed given the lack of attention to debt restructuring. This has provoked speculation that the bailout funds will only delay an inevitable return to Greek financial crisis and the need for yet more emergency aid.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.5139.
Australian Dollar (AUD) Exchange Rate Forecast to Edge Lower against the Single Currency (EUR) on US Dollar Gains
As the US Dollar recovered some of its losses from Wednesday’s downtrend, the risk-correlated ‘Aussie’ (AUD) declined versus many of its major peers. The US Dollar gained as traders feared the depreciation was overdone and as the Chinese Yuan settled. In addition to US Dollar strength, the Australian Dollar saw dampened demand as gold prices declined from the recent largest 5-day gain in around three months. Another significant ‘Aussie’ headwind is falling iron ore prices, which are expected to tumble further as a result of the Tianjin explosion.
‘There was no damage to the iron ore discharging berths following the explosion,’ Melbourne-based BHP Billiton Ltd. said in a statement on Thursday. ‘However, shipments and port operations have been disrupted as a result and we are working with our customers to minimise any potential impact.’
‘It is unclear the extent of the disruption likely to be experienced to port activities,’ Fortescue Metals Group Ltd. said in a statement. The company is Australia’s third-largest shipper. ‘We will be monitoring the situation.’
The Euro to Australian Dollar (EUR/AUD) exchange rate dropped to a low of 1.5046 today.
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast to Hold Gains ahead of US Advance Retail Sales
With an absence of further domestic data publications to provoke changes, the Euro to Australian Dollar (EUR/AUD) exchange rate is likely to hold gains ahead of US economic data. Should US data print negatively, the EUR/AUD could potentially soften. Friday will be significant for the EUR/AUD exchange rate with German and Eurozone growth data due for publication.
The Euro to Australian Dollar (EUR/AUD) exchange rate climbed to a high of 1.5208 today.
