Despite the seemingly endless run of disappointing data out of the Eurozone the Euro to Australian Dollar (EUR/AUD) exchange rate was hovering close to a two-week high as falling commodity prices, a strong US currency and global growth concerns hammered the ‘Aussie’.
Early in the session, the Australian Dollar managed to recover some ground to inch higher to trade in the region of 0.6885 against the Euro but it remained stuck near to its lowest level in two weeks. Offering some support to the ‘Aussie’ was the publication of a better than forecast jobs report.
According to the Australian Statistics Bureau, the number of people employed in the country increased by 24,100 compared with forecasts for a gain of 20,000. National unemployment remained unchanged at 6.2%.
Further support from the data was restrained however as some economists questioned the accuracy of the data after the statistics bureau review its methodology in the wake of confused jobs data.
The Euro remained under broad selling pressure after a report showed that German factory orders climbed less than expected adding to signs that the Eurozone’s largest economy will struggle to grow in the second half of 2014. Fears of a recession are mounting with every negative data release.
According to the Berlin based Economy Ministry, factory orders climbed by 0.8% in September. Economists had been forecasting for an increase of 2.3%. On year on year basis orders tumbled by 1%.
‘A slump in exports to Russia and lacklustre shipments to the rest of the Euro area weighed on output. Germany’s domestic fundamentals remain sound. We expect private consumption to gradually strengthen again,’ said Thomas Harjes, senior European economist at Barclays Plc.
Market attention is now focused upon the upcoming European Central Bank policy meeting and volatility is forecast for the EUR/AUD exchange rate.
Euro Exchange Rate News:
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