The AUD v EUR exchange rate continued to move lower, and the pair was trading at 0.5400 in the European session. The AUD to EUR pair was down another 1% as the ongoing weakness in the Australian currency continued.
Markets Are Still Hesitant Over Virus Fears
Global stock markets have been mixed at the start of the week as traders try to predict the low in stock markets. The US stock indices were up to 4% lower on Tuesday and the Australian share index was close to 7% lower, but it was testing the lows of five days ago and a rally could be imminent.
Markets have found some stability after recent selling and volatility, but traders are still hesitant to buy the dip amidst the ongoing virus spread.
The Eurozone ZEW Economic Survey came in at a dreadful figure, but this was to be expected. Last month’s number of business confidence was 10.4 and this month was -49.5, so it was a sobering reminder of the data that will be coming in the next weeks across the major economies.
Inflation and Employment Will Lead the Short-Term Outlook
Wednesday sees the release of Eurozone consumer prices with analysts expecting a figure of 1.2%. Like much of the economic data coming up, the number will be unlikely to move the AUD v EUR exchange rate due to the realisation that the virus panic will hit economies hard in the first two quarters. Investors are still in a wait-and-see mode as the economic data filters through.
Thursday sees the release of Australian employment numbers and this has been a key data release for the Australian Reserve Bank, when making their policy decisions. Recent emergency actions from the US central bank and the Reserve Bank of New Zealand to slash rates would hint at similar action from the RBA but a positive employment number may bring a chance of a pause and could lead to a rally in the Aussie dollar. The AUD to EUR currency pair will likely follow the recent trend of Aussie weakness as markets try to predict the effects of the recent virus spread. A positive Australian employment figure could give the Aussie a much-needed boost in the near-term.
If you’re considering buying or selling Australian dollars and would like to compare rates or know more about the factors that could impact your exchange rate, feel free to contact me directly using the form below. I’ll be happy to contact you directly and discuss your enquiry.