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.’
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.’
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.
Disclaimer: Currency-Converter.com.au and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. Currency-converter.com.au make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. Currency-converter.com.au shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.