Although European data produced mixed results on Wednesday, the Euro to Australian Dollar and New Zealand Dollar (EUR/AUD/NZD) exchange rates edged higher. The Australian Dollar has softened against its major peers after Gross Domestic Product data revealed cool growth in the third quarter. The New Zealand Dollar, meanwhile, has softened as a result of traders pricing the possibility of a water shortage amid an El Nino weather pattern.
The Euro to Australian Dollar exchange rate is currently trending in the region of 1.4670.
The Euro to New Zealand Dollar exchange rate is currently trending in the region of 1.5874.
Mixed results from European economic data have seen the common currency trending lower against the majority of its most traded currency rivals. The Italian Composite and Services PMIs advanced in November. However, the French Services and Composite PMIs and the Eurozone Composite and Services PMIs declined from previous figures. The German Composite PMI also softened, but the German Services PMI equalled the previous figure of 52.1.
Yesterday…
After European data flashed warnings regarding the potential for deflation, the Euro to Australian Dollar softened by around -0.31%. The Australian Dollar, meanwhile, has edged higher against many of its peers as a result of the Reserve Bank of Australia (RBA) keeping their benchmark interest rate unchanged. The Euro to New Zealand Dollar exchange rate, however, has appreciated by around 0.18%. This can be attributed to traders holding off on investment in ‘Kiwi’ (NZD) amid fears that Monday’s advance was unjustified.
The Euro to Australian Dollar exchange rate is currently trending in the region of 1.4660.
The Euro to New Zealand Dollar exchange rate is currently trending in the region of 1.5882.
Eurozone Inflation Data causes Euro (EUR) to Soften
When Eurozone inflation data indicated the distinct possibility of a sustained period of deflation, the common currency fell versus many of its major peers. Eurozone Producer Price Index declined from 0.2% to -0.4% in October, dropping from -1.4% to -1.3% on a yearly basis.
Australian Dollar (AUD) Slowly Strengthens on RBA Rate Decision
After the RBA opted to keep their benchmark interest rate on hold, the Australian Dollar appreciated against many of its major rivals. However, continued declination in commodity prices has seen the ‘Aussie’ advance at a snail-pace.
New Zealand Dollar (NZD) Declines on Unjustified Gains
With trader anxieties rife in regards to the possibility that Monday’s ‘Kiwi’ surge was unwarranted, the New Zealand Dollar softened against the majority of its currency competitors on Tuesday. A less-than-impressive domestic data publication aided the ‘Kiwi’ downtrend after Commodity Price weakened from -0.8% to -1.6%.
Euro to Australian Dollar and New Zealand Dollar (EUR/AUD/NZD) Forecast to Soften
With the European Central Bank due to make their interest rate decision on Thursday, the single currency is likely to soften in anticipation. With several ECB officials backing the use of unconventional methods to shore up the sluggish Eurozone economy, the potential for ECB stimulus is high. Therefore, the EUR/AUD/NZD exchange rate is likely to soften.
The Euro to Australian Dollar exchange rate has trended between a range of 1.4580 and 1.4735.
The Euro to New Zealand Dollar exchange rate has trended within a range of 1.5790 and 1.5897.
