Australian Dollar Euro Exchange Rate Touches High of 0.68 on High Demand for Iron Ore


Euros (EUR)

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.

Australian Economic News: Australian Dollar Rates Rise along with Expectations for Chinese Iron Ore Demand

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’.

Euro Conversion Rates show Heavy Losses on ECB’s Implied Uphill Struggle

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.

Australian Dollar (AUD)

AUD EUR Exchange Rate Forecast: RBA Statement Incoming, Dovishness likely

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.

Recent AUD EUR Exchange Rates

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.

About

Oliver has developed an expert understanding of the Forex market and the main drivers behind currency movement since entering the financial sector. He writes daily articles covering the latest shifts in currency for a range of sources online, as well as providing potential forecasts of future movement. This gives his followers all the information they require to protect their international money transfers from market exposure and currency risk. - View all posts by Oliver Meredew


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