The Australian Dollar to Euro (AUD/EUR) exchange rate softened by around -0.18% on Monday afternoon.
After oil prices rose, trader risk appetite improved significantly. This, in turn, caused the Australian Dollar to strengthen versus many of its peers thanks to its high-yielding potential. Mixed domestic data, however, anchored gains to an extent.
The common currency, meanwhile, strengthened versus many of its major rivals thanks to wider trade surplus in the Eurozone. The Eurogroup meeting to attempt to resolve Greece’s debt crisis is having minimal impact on Euro movement thus far as most speculate there won’t be any significant progress made this early in proceedings.
The Australian Dollar to Euro (AUD/EUR) exchange rate is currently trending in the region of 0.6824.
As geopolitical tensions mount in Libya, fears that oil supply will be heavily impacted caused prices to rise above $60 a barrel. ‘The big guessing game is whether we are now moving to a range from $60-68, or whether we’re about to turn south again and head back below $60 or possibly $50,’ said Jeffries oil broker Christopher Bellew.
Australian New Motor Vehicle Sales declined on a monthly basis in January from 2.6% to -1.5%. However, year-on-year vehicle sales managed to increase by 0.2%; eclipsing the previous figure of -1.1%.
The Australian Dollar to Euro (AUD/EUR) exchange rate dropped to a low today of 0.6807.
Eurozone trade surplus widened in December which caused the Euro to advance versus many of its most traded currency rivals. Trade Balance was forecast to drop from 21.6 billion to 19.0 billion, but the actual result climbed to 24.3 billion. Non-seasonally adjusted trade balance increased from 21.2 billion to 24.3 billion, bettering estimates of a drop to 20.0 billion.
‘More detailed data for December was not yet available, but numbers for the January-November period showed that much of the improvement in trade balance was due to a sharp fall in the deficit in the energy trade, thanks to plummeting oil prices,’ stated Jan Strupczewski writing for Reuters.
With the Eurogroup meeting soon to conclude, and with weekly consumer confidence data pertaining to Australia due late on Monday, there is heightened potential for the Australian Dollar to Euro (AUD/EUR) exchange rate to fluctuate. Tuesday’s RBA minutes from their most recent policy meeting and German economic sentiment data is likely to provoke AUD/EUR volatility.
The Australian Dollar to Euro (AUD/EUR) exchange rate climbed to a high today of 0.6835.
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