After dropping to its lowest levels against the euro since May 2009 last month, the Australian dollar has since begun to rebound against the euro with the pair currently trading up almost 0.5% on the day at 0.5685.
The recovery in the Australian dollar has corresponded with China’s diminishing number of victims from the COVID-19 pandemic, which has been a common them for the value of the Aussie dollar for some months now. When China was the centre of the crisis we saw the Australian dollar weaken which isn’t a unusual pattern. Those of our regular readers will be aware of the effects positive or negative economic data released out of China can have on the Aussie dollars value, and this is because the Australian economy is tied into Chinese economic performance owing to the geographically position of Australia in relation to China.
There has also been some surprisingly good data released out of the world’s second largest economy, particularly in the manufacturing sector and this has resulted in a boost to the Australian economic outlook.
Whilst AUD exchange rates have been improving, the euro has also been coming under increased pressure. Last night there were all-night talks between European Union Finance Ministers regarding an economic rescue package relating to the impact of the Coronavirus. No deals have been agreed yet and the talks have been suspended until Thursday now, as there appears to be disagreements between some nations with rumours circulating that Italy and the Netherlands are at loggerheads.
The trading bloc is hoping to agree on a half a trillion euro programme to negate the impact of the virus, with some Eurozone nations being some of the worst hit in the world. The outcome of the talks could impact euro exchange rates so it’s worth following if you’re concerned by euro exchange rate fluctuations.
On Friday, inflation data is due out of China which could impact the pair discussed today, get in touch using the form below for insight into how these factors could impact your currency exchange.