Australian Dollar to Euro (AUD/EUR) Exchange Rate Forecast to Rally on Greek Pessimism

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Euros (EUR)

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.

Australian Dollar (AUD) Exchange Rate Forecast to Climb against the Shared Currency on Soft US Dollar

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.

Euro (EUR) Exchange Rate Forecast to Dive against the ‘Aussie’ as Greek Woes Continue

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.

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