The AUD v EUR exchange rate was almost unchanged at the beginning of the European session as traders take time to consider the effects of a growing shutdown in key European economies. The currency pair was trading at 0.5465 and if the Aussie can find buyers here then the 0.5500 could provide a base for future support.
France Moves to a Curfew on Citizens
France has banned all public gatherings in the city and enforced a total lockdown, with one shopping trip per day permitted. The police and the army are being mobilized to enforce these rules and a 6pm curfew will be in force each night. The country also moved to suspend utility bills in the country. The move comes after France ordered restaurants and bars to close on Saturday, but people were still mingling in parks and public spaces the following day.
Outside of France, many European nations are moving to introduce border controls, with Germany moving to enforce border checks with neighbouring countries. These moves are set to put further pressure on the European economy and it’s maybe surprising that the single currency has continued to find strength against the Aussie dollar. Australia saw 51 new cases of the virus but in Austria alone, the figure was 114.
Economic Data May Boost the Aussie
Today sees the release of the Eurozone’s ZEW Economic Survey, which is normally a market-moving figure. However, the number is likely to have less impact due to the unknowns surrounding business and commerce in the bloc. Tomorrow also sees the release of Euro consumer prices, but again, this figure will be lagging as any positive number may be soured in future releases as deflation sets in from the lockdown of nations.
Thursday brings the release of Australian employment figures and this could help the Aussie find support if it is more positive than expected. The Reserve Bank of Australia have used unemployment as one of the key numbers to drive their monetary policy decisions and this release will likely give traders some hint of the bank’s next actions with interest rates and economic stimulus. The market is expecting 8.5k jobs to be added for the month of February, which is down from 12.5k in the previous month.
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