The Australian Dollar to Euro (AUD/EUR) exchange rate has risen by a respectable amount today, while elsewhere the ‘Aussie’ (AUD) has remained on a stable footing against its usual rivals.
The Australian Dollar (AUD) has managed to triumph over adversity today and printed gains of 0.3% against the US Dollar (AUD/USD) and the Euro (AUD/EUR), although a decline of -0.4% against the Canadian Dollar (AUD/CAD) has also been witnessed.
The advances have come against the odds, given that the price of iron ore is once again unfavourable towards the nation’s many mining companies and corporations.
On a more positive slant, however, the early Q4 private capital expenditure stat beat forecasts and rose from a negative -8.4% to a relatively more supportive figure of 0.8%. An additional boost to Australian economic prospects has been the estimation that the country is well on the way to transitioning over priorities in the economy, from increasingly unprofitable mining activities to a greater focus on areas such as agriculture.
The value of the Euro (EUR) has steadily risen over the course of the day, although this has been prevented from reaching full ‘rally’ status by continued tensions among common currency investors.
One factor limiting Euro gains has been the Eurozone inflation rate for January, which has fallen to -1.4% on the month and inched up from 0.2% to 0.3% on the year. While the annual figure shows that inflation is increasing, it is still nowhere near the 2% figure desired by the European Central Bank (ECB).
Another ongoing situation has weakened the Euro, this time relating to Greece. Prime Minister Alexis Tsipras has demanded that nearby EU nations ease their restrictions to allow more migrants out of Greece, stating that the current legislation is effectively turning Greece into a ‘warehouse’ of lost souls. A recent escalation of the story is that Greece has recalled its ambassador in Austria, one of a number of countries that Tsipras urged to implement border-loosening measures.
The Euro has posted gains of 0.4% against the Swiss Franc (EUR/CHF) and the Indian Rupee (EUR/INR) and 0.7% against the Japanese Yen (EUR/JPY) today, although these gains have been countered by losses of -0.3% against the Australian Dollar (EUR/AUD) and Pound Sterling (EUR/GBP) and -0.8% against the Canadian Dollar (EUR/AUD).
The next occurrences set to affect the pairing will be Eurozone-sourced, covering the currency bloc’s confidence scores for February tomorrow morning.
Present expectations are that confidence will drop overall, although a rising French GDP print and German inflation rate report would likely counteract any potential negative effects.
Australia’s next input isn’t due until Monday, when the January HIA new home sales figure is due along with the AiG manufacturing index for February. Present expectations are respectively negative and positive.
The Australian Dollar to Euro (AUD/EUR) exchange rate was trending in the region of 0.6548 and the Euro to Australian Dollar (EUR/AUD) exchange rate was trending in the region of 1.5276 today.
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