The Australian Dollar to Euro (AUD/EUR) exchange rate remained in a tight range in Thursday’s European session, despite a rise in GfK’s German Consumer Confidence index.
The April survey showed sentiment increased from 9.7 to 10.0, instead of the forecast 9.8—a 14-year high.
Some economists had suggested that sentiment may be dampened amid negotiations between Greece and its creditors. However, that hasn’t been the case.
GfK industry expert Rolf Burkl commented: ‘The majority of people polled do not view the Grexit scenario as being specifically frightening. They can’t imagine Greece’s potential departure from the Eurozone having a big impact economically.’
However, despite German sentiment remaining buoyant, the situation between Greece and its creditors isn’t boding well. Many experts are suggesting the nation will run out of funds by Easter—a scary prospect amid lethargic negotiations.
Meanwhile, the Australian Dollar is trading within an extremely quiet second half of the week for domestic data, leaving the ‘Aussie’ susceptible to any global shocks.
The Reserve Bank of Australia (RBA) recently cut interest rates from 2.50% to 2.25% in a bid to encourage economic growth. However, the decision caused concern amongst economists who fear the housing market could overheat as a result.
Industry expert Michael Thomas has suggested that 2015 could be a massive year for house building and the gap between wages and home prices could narrow in larger cities.
Thomas stated: ‘There is a strong likelihood that by the end of 2015 we’ll have seen more new housing built in Australia than in any prior year,’
An expert in the field, James Hickey, also gave his two cents on the matter, saying: ‘The value of new housing built is likely to be a record in 2015. Interest rates are at record lows with discounted variable rate loans around 4.65%, and mortgage defaults are less than 15 basis points, which is a record now.’
The Australian Dollar to Euro (AUD/EUR) exchange rate could be in for major fluctuations in the second half of Thursday’s European session when European Central Bank (ECB) President Mario Draghi speaks.
Friday could also see moderate Euro to Australian Dollar (EUR/AUD) exchange rate movement with the release of German Retail Sales figures.
The Australian Dollar to Euro (AUD/EUR) exchange rate is trading at 0.7163. The Euro to Australian Dollar (EUR/AUD) exchange rate is trending in the region of 1.3969.
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