Australian Dollar (AUD) Slumps against Euro (EUR) on Fed Rate Speculation

Euros (EUR)

Today has not been a particularly positive one for the Australian Dollar (AUD), which has fallen into a state of decline against the Euro (AUD/EUR) and most other major peers.

Australian Dollar Losing Out with Current Fed Aspirations for Interest Rate Hike

In terms of market appeal, the Australian Dollar (AUD) has been faring poorly today. This is on account of there being no domestic data to refer to lately; the last piece of ‘Aussie’ news was the skilled vacancies result for February, which came yesterday and showed a slide to -0.9% from -0.4%.

Meanwhile, the ‘Aussie’ has been put under increasing pressure by Federal Reserve hawkishness, which has mainly been focused on the rising likelihood of an interest rate hike taking place as early as April.

The US Treasury has lately criticised Reserve Bank of Australia (RBA) officials for ‘jawboning’ the currency to a lower level, although RBA Governor Glenn Stevens has defended his actions by insisting that the Australian Dollar is potentially too high to control at the present time.

The Australian Dollar has fallen by -0.2% against the Euro and by -0.5% against the Pound Sterling (AUD/GBP) today, although a minor gain against the New Zealand Dollar (AUD/NZD) has also been seen.

Euro (EUR) Stands Defiant Today against Poor Outlooks and Brussels-Induced Concerns

The Euro (EUR) has made notable gains today, in spite of Tuesday’s terror attacks continuing to have a negative impact.

The most recent advances seen for the single currency have included a minor gain against the Australian Dollar (EUR/AUD), 0.6% against the Polish Zloty (EUR/PLN) and 0.8% against the South African Rand (EUR/ZAR).

These improvements have come against recent pessimistic forecasts from the European Central Bank (ECB), and have been partly induced by falling German import prices and rising Italian industrial sales/orders on the month in January.

French GDP Figures may Cause Last Shift in AUD/EUR Exchange Rate Before Weekend

The near future is not set to bring any Australian ecostats, therefore the only further movement in the pairing’s exchange rate is likely to come from the Eurozone side.

This will be in the form of the German import price indices for February, as well as the French finalised GDP figures for the fourth quarter.

AUD, EUR Exchange Rates

The Australian Dollar to Euro (AUD/EUR) exchange rate was trending in the region of 0.6735 and the Euro to Australian Dollar (EUR/AUD) exchange rate was trending in the region of 1.4854 today.


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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