AUD/EUR, AUD/GBP and AUD/USD Exchange Rates Rally on Domestic Data

  • Posted on

Euros & Cents (EUR)

The Australian Dollar to Euro (AUD/EUR), Pound Sterling (AUD/GBP) and US Dollar (AUD/USD) exchange rates rallied on Thursday after domestic data showed that business investment increased unexpectedly in the third quarter of 2014.

According to the Australian Bureau of Statistics, total new capital expenditure for the third quarter increased by 0.2% on a seasonally adjusted basis. The figure was far better than the 1.5% decline forecast by economists.

‘The capital expenditure estimate was $153.2 billion; we thought it would lift between $140 billion and $145 billion. There seems to be a slower fall-off in mining capital expenditure than expected, and a bigger lift in other areas, which are not mining and manufacturing. Adding all the elements up, it’s a less bad slightly more optimistic picture but it’s still pretty clear the depreciation pressures on the Australian Dollar are coming from two major sources: the decline in terms of trade and a stronger US Dollar,’ said Ray Attrill from National Australia Bank.

Also supporting the Australian Dollar was the release of a separate report, which showed that new home sales in the nation increased by 3% in October, a rise from the flat reading recorded in the preceding month.

A softening of the US Dollar and the closure of the US markets due to the Thanksgiving Holiday period also allowed the ‘Aussie’ to recover from the previous session four year low. The ‘Greenback’ came under pressure after initial jobless claims data showed that more Americans than forecast filed for unemployment data.

Other reports showed that U.S. consumer sentiment was revised lower, manufacturing activity in the Chicago region slowed and data from the housing sector was mixed.

Australian Dollar to US Dollar Exchange Rate Forecast

The Australian Dollar to US Dollar exchange rate is forecast to remain firmer for the remainder of the week due to the closure of the US markets.

‘Because its Thanksgiving in the US today and many people will be off work tomorrow, there won’t be much going on. We’re pretty much through with the US calendar, so at this stage the risk is we will limp into the weekend rather than go out with a bang,’ Attrill said.

Australian Dollar to Euro Exchange Rate Forecast

The ‘Aussie’ retained gains against the Euro despite confidence data out of the Eurozone showing slight improvement. Earlier in the session, a report showed that unemployment in Germany fell more than forecast. If inflation data out of the Eurozone’s largest economy comes in positively then the Euro could claw back lost ground.

« Previous Story

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Tumbles to Fresh Four-Year Low

Next Story »

AUD/USD Exchange Rate Drops to over Four-Year Low

Disclaimer: 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. 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. 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.