The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 1.4159.
With differing opinions as to how aggressive the European Central Bank will be in the forthcoming policy decision, the shared currency is generally trending higher amid speculation the declination was overdone.
The Australian Dollar, meanwhile, is trending higher versus many of its major rivals after a rally in Asian stocks saw increased demand for higher-yielding assets.
Yesterday…
The Euro to Australian (EUR/AUD) exchange rate is trending within a narrow range on Tuesday afternoon.
As we draw closer to the European Central Bank’s policy decision, the shared currency has softened versus many of its major peers. Mixed data results had minimal impact on Euro movement amid divergent speculation regarding ECB quantitative easing.
The Australian Dollar, meanwhile, softened against the majority of its most traded rivals due to declination in iron ore prices.
The Euro to Australian Dollar (EUR/AUD) exchange rate is currently trending in the region of 0.7063.
Euro (EUR) Exchange Rate Softens ahead of Policy Decision
A mixed-bag of European data on Tuesday had minimal impact on the shared currency as trader focus is dominated by the forthcoming ECB policy decision. Most experts agree that the policymakers will introduce some form of quantitative easing, but opinions are varied as to the extent.
French President Francois Hollande stated; ‘On Thursday, the ECB will take the decision to buy sovereign debt, which will provide significant liquidity to the European economy and create a movement that is favourable to growth.’
The Euro to Australian Dollar (EUR/AUD) exchange rate dropped to a low today of 1.4191.
Australian Dollar (AUD) Exchange Rate Trending Lower on Iron Ore
With oil prices showing signs of continued declination, market sentiment dampened and cooler demand for high-yielding assets saw the ‘Aussie’ (AUD) soften against many of its major peers.
Further Australian Dollar declines can be attributed to iron ore falling overnight, 3% under the five-year low it reached in December. ‘There’s no doubt the numbers are lower than people expected,’ stated strategist Evan Lucas. ‘You could draw the conclusion that prices are finally driving some decision making.’
Euro to Australian Dollar (EUR/AUD) Exchange Rate Forecast to Hold Steady
Given the lack of influential domestic data to curb the trend, the Euro to Australian Dollar (EUR/AUD) exchange rate is likely to continue trending within a narrow range for the remainder of Tuesday. With that being said, there is the possibility of ‘Aussie’ volatility later on Tuesday evening with the publication of consumer confidence data.
The Euro to Australian Dollar (EUR/AUD) exchange rate climbed to a high today of 1.4191.