The EUR v AUD exchange rate was trading 0.15% higher on the day as the market continues its efforts to bounce from a recent slump. The EUR v AUD was pressing the 1.6160 level in afternoon trading as markets await another key job market release from the Aussie economy tomorrow.
Will Employment Numbers Change the EUR to AUD Forecast?
The latest update on Australian employment is important for markets as the Reserve Bank of Australia (RBA) has been vocal lately in stating that further economic stimulus would only be warranted if employment dips in the country. The latest estimate is for 10k new jobs added, down from 28.9k in the previous month.
If the figure comes in lower-than-expected the Euro will likely get the rally it is trying to establish. A stronger number would see the recent AUD strength continue. Tomorrow also brings the publication of the European Central Bank’s recent policy meeting minutes midway through the European trading session.
Aussie Dollar Gets a Boost from Hopeful Asian Markets
Asian markets were higher on Wednesday after Japanese export figures showed that the impact of the Chinese virus situation was not as bad as estimates had predicted. Japanese exports fell 2.6% year-on-year, but this was better than the 7% figure that gloomy analysts had foreseen. The increased optimism in the region is a boost for the Australian economy and will factor into the AUD to EUR outlook if the confidence continues.
This development came alongside news that the spread of the Coronavirus was slowing, with the number of new cases reported at 2,000 for the second day running. Investors are hopeful that the worst of the virus is over and global supply chains will get some respite as Chinese production continues to recover after the New Year holiday.
Markets will be quiet for the rest of Wednesday’s session as traders await the release of the US Federal Reserve’s latest meeting minutes. Following that all eyes will turn to the Australian employment release, which will drive the EUR v AUD exchange in tomorrow’s trading. The pair has been in a tight range between 1.61-6200 over the last five days and the rate could see a breakout from these levels.
For more information on AUD exchange rates for an upcoming currency transfer, you can email me, Jonathan Watson, using the form below.