Australian Dollar to Euro Rate Slumps as RBA Rate Freeze Offers No Solace
The Australian Dollar to Euro (AUD/EUR) exchange rate has entered a trough recently, with the ‘Aussie’ (AUD) collapsing against the competition due to unfavourable internal and external factors.
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‘Aussie’ Softened by Uncontrollably Strong Currency after Muted RBA Interest Rate Decision
The Australian Dollar (AUD) has tumbled so far this week, having been on a clear downtrend against the Euro (AUD/EUR) and others. Of late, the ‘Aussie’ has lost out by -0.3% against the Pound Sterling (AUD/GBP) and -0.8% against the Chinese Yuan (AUD/CNY) and the US Dollar (AUD/USD). Against the single currency, a loss of -0.6% has been seen.
The Australian Dollar’s biggest detractors lately have been the March performance of services index, which fell from 51.8 to 49.5. Additionally, the national trade balance deficit has also been seen to expand from a prior -3156m to -3410m.
The biggest harm to the Australian economy’s appeal, however, has been dealt by the Reserve Bank of Australia (RBA), which recently elected to leave the interest rate at 2%. This comes as the strength of the Australian Dollar is considered to be a limiting factor on national growth, an issue that has not been addressed by the latest RBA decision.
Euro (EUR) Movement Steady as Retail Sales Balance Earlier PMI Catastrophe
The Euro (EUR) has been positive against most of its rivals lately, with the most recent gains including 0.5% against the Pound Sterling (EUR/GBP), 0.8% against the Canadian Dollar (EUR/CAD) and the Australian Dollar (EUR/AUD) and 1.7% against the South African Rand (EUR/ZAR).
Positive news for the Euro has been marred by negative contributions of late, although given the overall strength of the Euro, it appears that optimism has won out among investors.
Recent finalised services and composite PMI printings for March across the Eurozone have been almost universally poor, although this has been counteracted by the Eurozone retail sales figures for February, which rose on the year and did not fall as much as expected on the month.
AUD/EUR Exchange Rate Forecast: RBA’s Kent Speech due Today, along with Individual Eurozone Retail PMIs
The present day will bring a range of Eurozone economic announcements, with the evening’s German, French and Italian retail PMIs making up the most notable sources of movement.
For Australia, the sole economic announcement will be a speech from the RBA’s Christopher Kent, which is due to cover the topic of economic forecasting.
AUD, EUR Exchange Rates
The Australian Dollar to Euro (AUD/EUR) exchange rate was trending in the region of 0.5309 and the Euro to Australian Dollar (EUR/AUD) exchange rate was trending in the region of 1.5106 recently.