Australian Dollar Euro Exchange Rate Soars after Historic Iron Ore High Bolsters AUD
The Australian Dollar Euro (AUD EUR) exchange rate jumped to 0.70 during Monday’s trading session, putting the pairing in a strong position for the week ahead.
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The Euro found itself in low overall demand, owing to fears that Donald Trump could have negative trade impacts on Europe when he becomes US President next year.
Australian Dollar Euro Rally Triggered by Record High for Iron Ore
The Australian Dollar found itself in high demand across the board on Monday, rising considerably against the Euro and the rest of its regular peers.
The key piece of supportive data concerned iron ore prices, which were shown to have doubled since the historic lows seen almost a year ago.
In the Eurozone, the single currency struggled on the fear that Donald Trump’s administration might cut off the EU from US trade, owing to his protectionist approach to importing overseas goods and materials.
Eurozone domestic data was damagingly mixed, with the annual September industrial production figure falling by less than expected but the negative result on the month exceeding the worst predictions.
AUD EUR Turbulence Likely on Incoming RBA Minutes
The next Australian data that could influence AUD/EUR movement is set to come from the Reserve Bank of Australia (RBA), which will be releasing its November meeting minutes later on this morning.
The RBA interest rate decision, made at the start of the month, resulted in another rate freeze at 1.5%, though if the RBA minutes indicate a possible cut in December, the Australian Dollar could well slide against the Euro.
Looking past this posting, Thursday morning will bring jobs figures for October; as it stands, the unemployment rate is forecast to remain at 5.6%.
Euro Australian Dollar Exchange Rate Gains Possible on EZ GDP and Trade Data
The Euro may well be able to advance against the Australian Dollar in the near-term, given the expectations that have been made for incoming Eurozone GDP and trade balance figures.
The second estimate for Q3’s GDP growth rate is expected to see no change on the quarter or year, with figures set to remain at 0.3% and 1.6% respectively.
More positively, the September trade balance has a surplus expansion forecast from 18.4bn to 21.6bn, while the ZEW economic sentiment index for November is expected to climb from 12.3 to 15.
Recent Interbank Exchange Rates
At the time of writing, the Australian Dollar Euro (AUD EUR) exchange rate was trending in the region of 0.70 and the Euro Australian Dollar (EUR AUD) exchange rate was trending in the region of 1.42.