The Australian Dollar has managed to make a number of sizable gains against its peers of late, including a top rate of 0.68 against the Euro.
The Euro has been a more unstable prospect for investment, having had its appeal lowered by a dovish European Central Bank (ECB) bulletin for August.
The value of the ‘Aussie’ has been consistently favourable recently, with gains being recorded against virtually all of the Australian currency’s regular peers.
The source of this support is not immediately apparent, given that the latest Australian data, covering retail sales made in June, showed a drop from 0.2% to 0.1%.
This positivity for the Australian currency has actually come from overseas, where major trade partner China is expected to be gearing up for a consistently high level of demand for Australian iron ore. The mining resource is used to make steel, and this news bodes well for a future stream of materials and money between the two nations for the foreseeable future.
Commenting on the estimates of Chinese demand, IG Ltd. Markets Strategist Evan Lucas said;
‘Iron ore has seen an interesting demand change over the past three months. The PMI data today suggests that China is yet to see any moderation in its infrastructure spending’.
The Euro has been in a bad way lately, having been dealt a mixed hand in terms of domestic data and ultimately softened by an unfavourable ECB economic bulletin.
In the former case, earlier on in the week the Eurozone-wide composite and services PMIs for July rose, while the retail sales results for June fell on the month and reprinted at the same level on the year.
For the ECB’s bulletin, the report was hardly optimistic. While the situation was expected to ultimately improve, forecasts were that this bettered-state would be slow to arrive unless the current high levels of debt and low growth could be combated effectively.
The next Australian domestic data will be out shortly, in the form of the AIG construction index for July; this has a drop from 53.2 to 50.6 predicted.
Following on from this towards the end of the morning will be a statement from the RBA on monetary policy; given that the central bank recently cut the interest rate, it seems unlikely that RBA officials will be adopting hawkish tones.
Eurozone data to watch out for will consist of Germany’s factory orders for June, as well as Greece’s balance of trade for the same month.
Respectively, forecasts have been for a rise in factory orders from 0% to 0.8% and an equally positive reduction in the current Greece trade deficit from -1.509bn to -1.2bn.
The Australian Dollar Euro (AUD EUR) exchange rate has been trending in the region of 0.6847 and the Euro Australian Dollar (EUR AUD) exchange rate has been trending in the region of 1.4612 recently.
Disclaimer: Currency-Converter.com.au and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. Currency-converter.com.au make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. Currency-converter.com.au shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.