Euro to Australian Dollar Exchange Rate Steadies as Eurozone Outlook Resilient
The Euro to Australian Dollar (EUR/AUD) exchange rate has seen mixed movement this week so far. Investors continue to find the Euro (EUR) appealing amid its resilient outlook, while shifts in market risk and trade-sentiment cause Australian Dollar (AUD) volatility.
Since markets opened this week at the level of 1.5854, EUR/AUD has fluctuated. EUR/AUD briefly touched on a low of 1.5652 at the beginning of the week, the pair’s worst level all year.
EUR/AUD then attempted a rebound, but this was also short-lived. At the time of writing on Thursday morning, EUR/AUD was trending just below the week’s opening levels in the region of 1.5820.
Euro (EUR) Exchange Rates Avoid Further Losses despite Mixed Data
Euro movement has been driven largely by movement in rival currencies lately. The Eurozone’s relatively resilient coronavirus and economic outlooks keep the currency steadier when rivals fluctuate.
This week’s EUR/AUD movement has been focused on Australian Dollar strength. Today’s Eurozone data has been too mixed to influence the Euro’s direction much either.
German factory orders from November beat forecasts, avoiding an expected contraction and coming in at 2.3%. Eurozone construction PMI was weaker than expected though, printing at 45.5.
Optimism that coronavirus vaccines will help the Eurozone economy to rebound from the pandemic continue to keep the Euro fairly appealing overall.
Australian Dollar (AUD) Exchange Rates Volatile amid Chaos in the US
The Australian Dollar is a currency often correlated to trade and risk-sentiment. As a result, it has been driven by this week’s developments in global politics and the coronavirus pandemic.
Movement has been mixed in the past day. Last night, chaos erupted in DC, USA as white supremacists stormed the Congress building in protest of the US election result.
The mob, incited by US President Donald Trump who has refused to condemn the group, was eventually quelled though. Ultimately markets have begun to calm again.
Amid hopes that uncertainty will soften, the risky Australian Dollar is holding its ground for now.
Euro to Australian Dollar (EUR/AUD) Exchange Rate Could Fall Further
Optimism over eventually recovery from the coronavirus pandemic, as well as hopes for more stimulus for the US economy, could continue to buoy market risk-sentiment.
If the US political situation calms, investors more willing to take risks could keep buying the Australian Dollar.
Amid a lack of drive in the Euro’s movement, the shared currency’s movement could be limited as well.
If Eurozone data remains strong it could keep supporting the Euro. However strong rivals would keep a lid on the Euro’s appeal.
German trade balance and Eurozone unemployment data has the potential to influence Euro to Australian Dollar (EUR/AUD) exchange rate movement tomorrow.