The Australian Dollar to Euro (AUD/EUR) exchange rate rallied by around 0.65% during Wednesday’s European session.
In response to a weak US Dollar and a massive increase in gold prices, the Australian Dollar advanced versus its major peers. Even geopolitical tensions in Europe and poor results from domestic data publications weren’t enough to prevent ‘Aussie’ (AUD) gains.
The Euro, meanwhile, dived versus its major rivals amid speculation that Greece will not be able to secure bailout funds before a massive loan repayment due to the International Monetary Fund (IMF) at the end of June.
Most analysts expect the latest submission of reforms proposal will be rejected by the European Commission given that many officials have already stated that the proposal is just a reworked version of previously rejected proposals.
The Australian Dollar to Euro (AUD/EUR) exchange rate is currently trending in the region of 0.6849.
With trader profit-locking causing a significant US Dollar depreciation, the risk-correlated Australian Dollar advanced versus its major competitors.
The appreciation continues despite ongoing issues with Greece and poor domestic data results. In addition to the weak US Dollar, the ‘Aussie’ also advanced in response to a massive gold price rally. ‘Everyone is piling up their bets for the safe heaven as we are moving closer and closer to no deal for Greece,’ AvaTrade chief analyst Naeem Aslam said.
Also supporting the Australian Dollar is iron ore prices which rallied to a fresh four-month high amid improved demand from China. ‘[China’s steel sector] has reached an inflection point on the back of an improving supply and demand outlook’ Helen Lau, a Hong Kong-based analyst said. ‘Demand recovery, albeit lacklustre over the short term, will accelerate on the back of ongoing fiscal stimulus and monetary easing policies.’
The Australian Dollar to Euro (AUD/EUR) exchange rate dropped to a low of 0.6855 today.
Amid speculation that the latest proposal submitted by Athens to the Europgroup, in order to unlock vital bailout funds, will be rejected; the shared currency dived versus its major peers. Many now fear that time has run out for the Hellenic nation and that their refusal to budge on imposed austerity measures will eventually see Greece forced to leave the Eurozone.
Additional losses can be attributed to comments made by German government official Michael Fuchs, who stated that the Greek government were not being serious enough when submitting reforms.
With time rapidly running out before a massive loan repayment is due to the IMF, Athens will need to unlock bailout funds before the end of the month to stand a chance of making the payment.
Australian Dollar to Euro (AUD/EUR) Exchange Rate Forecast to Hold Gains
Given the absence of further domestic data publications to provoke changes for the pairing, the Australian Dollar to Euro (AUD/EUR) exchange rate is likely to hold gains for the remainder of Wednesday’s European session.
Thursday will be significant for those trading with the ‘Aussie’ with Employment Change and Unemployment Rate data publications due for release.
The Australian Dollar to Euro (AUD/EUR) exchange rate climbed to a high of 0.6874 today.
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.