Australian Dollar to Euro (AUD/EUR) Exchange Rate Forecast: RBA Stability, Upbeat Australian GDP Sees ‘Aussie’ Surge

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The Australian Dollar to Euro (AUD/EUR) exchange rate registered gains on Monday after upbeat Australian Gross Domestic Product (GDP) data emerged and the situation between Greece and its creditors continued.

The Australian Dollar was offered some significant support when Australian GDP failed to fall from a negatively revised 2.4% to 2.1% in Q1 on the year as predicted, instead only softening slightly to 2.3%. However, the ecostat still caused concerned that growth isn’t expanding.

NAB chief economist Alan Oster commented: ‘You’ve got consumption growing at about 0.5% which is really weak, you’ve got a lot of growth in construction of apartments and that sort of thing, but you’ve got a big hole in business investment which is driven mainly by engineering construction, which is the mining bit. The total economy is growing 0.9% but the local economy, outside the stocks and the exports is basically zero.’

Greece Approaches Friday IMF Deadline, Euro (EUR) Exchange Rate Tentative

Meanwhile, over in Europe, the Euro is awaiting Friday’s Greek International Monetary Fund (IMF) repayment deadline. The Greek government has claimed it won’t be making the payment without a deal. This week has been an interesting one for Greece as the nation submitted a reform proposal to its creditors in the final days before it runs out of funds.

The nation could very feasibly leave the Eurozone if no agreement can be made in the next few weeks, such an outcome has been termed a ‘Grexit’.

Dutch Prime Minister Mark Rutte commented: ‘You can never say it (Grexit) is not an option, but it is not the aim. The aim is to come to a common understanding. I do believe they are working very hard to get somewhere, but at the same time they (the Greeks) have made so many promises in the elections and afterwards in parliament… that it’s difficult to bridge the gap.’

Australian Dollar to Euro (AUD/EUR) Exchange Rate Forecast

It appears as if the Australian Dollar’s strength is likely to continue after the upbeat GDP stat and latest Reserve Bank of Australia (RBA) interest rate decision, which saw policymakers keep policy stable.

However, the European Central Bank (ECB) is due to announce its latest interest rate decision later in the session as well as conducting a follow-up press conference with ECB President Mario Draghi, which could cause some significant Euro exchange rate movement.

The Euro to Australian Dollar (EUR/AUD) exchange rate is trending at 1.4311. The Australian Dollar to Euro (AUD/EUR) exchange rate is trending in the vicinity of 0.6990.

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