The Euro to Australian Dollar (EUR/AUD) exchange rate strengthened by around 0.31% on Friday morning.
After German Gross Domestic Product bettered estimates in the fourth quarter, the shared currency strengthened against many of its major peers. Speculation that the Eurozone growth data will also print impressively is seeing heightened demand for the common currency.
The Australian Dollar, meanwhile, is generally softer versus the majority of its most traded currency rivals. This is as a result of Reserve Bank of Australia’s Governor Glenn Stevens admittance that he feels policy stimulus wouldn’t be as effective thanks to difficulties in the housing market.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.4747.
Yesterday…
The Euro to Australian Dollar (EUR/AUD) exchange rate advanced by around 0.84% on Thursday morning.
Although the meeting of Euro-area finance ministers to discuss the Greek debt crisis didn’t produce a clear resolution; heightened optimism that there will be a solid agreement in the end has aided a slight Euro uptrend. Somewhat disappointing German inflation data has been overshadowed by speculation that Greece will remain part of the Eurozone.
The Australian Dollar, meanwhile, softened as its resilience crumbled after domestic jobs data was particularly disappointing. A sizeable gain in unemployment will weigh on the ‘Aussie’ with market sentiment already rocky amid geopolitical unrest.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.4774.
Euro (EUR) Exchange Rate Strengthens on Positive Signs from Eurogroup
In the aftermath of the first meeting between high-ranking government officials from several European nations, the single currency gathered momentum. Although this meeting failed to find a solution, many feel that there are signs that the Greek debt crisis will be resolved in such a way as to please all parties involved.
‘We understand each other much, much better now than we did this morning,’ Greek Finance Minister Yanis Varoufakis told reporters after the meeting in Brussels. ‘Europe manages to find agreements even if it’s at the last moment.’
Data out of Germany showed inflation fell by more than initially forecast in January, although the result has had minimal impact. The year-on-year German Consumer Price Index was forecast to hold at the original estimate of -0.3%, but the actual data dropped to -0.4%.
The Euro to Australian Dollar (EUR/AUD) exchange rate dropped to a low of 1.4635.
Australian Dollar (AUD) Exchange Rate Dives on Unemployment Data
Australian labour market data printed poorly on Thursday, causing the ‘Aussie’ to soften versus the majority of its most traded currency rivals.
Employment Change was forecast to drop by -5,000 in January, but the actual result saw -12,200 fewer employed. It is unsurprising, therefore, that the Unemployment Rate eclipsed the median market forecast of a rise from 6.1% to 6.2%, with the actual result reaching 6.4%.
Cassandra Goldie, the chief executive of the Australian Council of Social Service, said: ‘The big jump in the unemployment rate we’ve seen today is deeply concerning, especially since it means 34,500 extra people are now in the troubling position of finding paid work in a tight labour market and those who rely on Newstart will have to struggle on the very low unemployment allowance payment of just $37 a day.’
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast to Hold Gains
Although the Euro has been sensitive to developments in Greece of late, the troubling Australian labour market figures may see the Euro to Australian Dollar (EUR/AUD) exchange rate hold gains for the remainder of Thursday.
There is a high likelihood of Euro volatility on Friday, with German and Eurozone growth data taking centre stage. Positive results will be a welcome boost after geopolitical unrest has weighed heavily on the single currency.
The Euro to Australian Dollar (EUR/AUD) exchange rate reached a high today of 1.4806.