Although currently facing detrimental factors and events from all sides, the Australian Dollar (AUD) has trended positively against the Euro (AUD/EUR) and made other stable gains recently.
The Australian Dollar to Euro (AUD/EUR) exchange rate has risen by 1% lately; elsewhere the ‘Aussie’ (AUD) has seen gains of 0.2% against the US Dollar (AUD/USD) and the Chinese Yuan (AUD/CNY). Falls have been represented most strongly by a -0.2% drop against the New Zealand Dollar (AUD/NZD).
Despite being surrounded by potential negativity, such as a wary reception to new Prime Minister Malcolm Turnbull, the continuingly low price of commodities and a seriously flagging mining industry, the Australian Dollar has remained solid. This can be chiefly attributed to, among other things, the Australian Department of Industry, Innovation and Science, who have estimated in an update that the price of iron ore, a key Australian commodity, will rebound repeatedly in value from 2017-2020.
The estimation also factored in a possible renewal of demand from China due to their steel production, and can only be considered as a predictive lifeline for the ‘Aussie’. Elsewhere, a sudden spike in the price of copper has also aided in the Australian currency’s positive performance.
The Euro (EUR) has fared far worse than the Australian Dollar (AUD) lately, seeing mass declines in value due to a string of detrimental data releases recently. The German CPIs all fell below forecasts on Tuesday and on Wednesday, the German and Eurozone Unemployment data failed to offer any respite. In addition, Eurozone CPIs disappointed when the Estimate for September fell from 0.1% to -0.1%.
Among the worst of the Euro’s losses have been drops of more than -0.6% against the Pound Sterling (EUR/GBP) and the US Dollar (EUR/USD), over -0.8% against the Australian Dollar (EUR/AUD) and the Canadian Dollar (EUR/CAD) and the New Zealand Dollar (EUR/NZD) and -1.2% against the Indian Rupee (EUR/INR). The only notable gain has been by 0.3% against the Polish Zloty (EUR/PLN).
Looking ahead, the Australian Dollar (AUD) will have the advantage on early results, with the AiG Performance of Manufacturing Index for September coming in first. No predictions have been made, but given that the figure last printed around 51.7, the stakes are high, as a contraction could factor in if a major decline is recorded. More ‘Aussie’ results of lesser importance follow, then it will be the turn of the Eurozone PMIs that take up the rest of the day.
The Australian Dollar to Euro (AUD/EUR) exchange rate was trending in the region of 0.6294 and the Euro to Australian Dollar (EUR/AUD) exchange rate was trending in the region of 1.5892 at the close of the European trading session yesterday.
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