The present EUR AUD gains come from Eurozone GDP data, which has overpowered similarly good news from Australia.
Australian Dollar to Euro Rate Tumbles despite Strong AU Confidence Reading
Today has seen the AUD EUR exchange rate decline by -0.3%. While a moderate loss, this has nonetheless been an exception in daily trading.
Elsewhere, the Australian Dollar has seen gains against its regular currency peers.
The day’s good news has focused on business confidence; the NAB business confidence score has risen from 7 points to 8.
Giving a balanced reaction to the data was Alan Oster, NAB Chief Economist;
‘This is an extremely strong result and of itself would suggest a better than expected performance for the economy.
However, it is unclear just how long conditions can remain at these record levels given that the result was driven by a surprise jump in manufacturing.
Some of the leading indicators such as forward orders, which [are] a more accurate read on the strength of the economy, have actually softened a little in recent months’.
Oster has ultimately been positive about the state of the Australian economy, saying;
‘The subdued conditions in retail have been a major concern for some time now, but are not overly surprising given some of the headwinds that are facing the industry.
However, retail conditions did improve a little this month, which was enough to arrest the downward trend we have been seeing since mid-year.
At the other end of the spectrum, the construction industry is still performing incredibly well, thanks to support from both a large pipeline of residential construction and a likely improvement in non-residential construction activity’.
Euro Surges on Higher Reported GDP Growth
The Euro has advanced significantly today, having been boosted by rising German and Eurozone-wide GDP.
During the third quarter, the German quarter-on-quarter and year-on-year GDP flash has risen above forecasts.
Further support has come from Italy’s GDP readings for Q3, which has also shown considerable growth.
Although the Eurozone-wide quarterly figure slowed a slowdown from 0.7% to 0.6%, traders were more taken by the fact that annual GDP had risen from 2.3% to 2.5%.
Will Australian Dollar Recover Lost Ground on Upcoming Confidence Stats?
Sticking with confidence measures, the next Australian reading to watch out for will be the Westpac reading for November.
Out on Wednesday, this will look at the consumer confidence change during the month.
Estimates are for a small reduction, but potentially not enough to devalue the Australian Dollar.
Wednesday’s main Eurozone news will be a trade balance reading for September. A significant surplus rise is expected, from 16.1bn to 25.1bn.
If this prediction proves accurate, the Euro could rise further against the Australian Dollar.
Recent Interbank AUD EUR Exchange Rates
At the time of writing, the Australian Dollar to Euro (AUD EUR) exchange rate was trading at 0.6515 and the Euro to Australian Dollar (EUR AUD) exchange rate was trading at 1.5344.