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Discussion in 'Money & Finance' started by John From Moneycorp, Jul 24, 2013.

  1. John From Moneycorp

    John From Moneycorp Foreign Exchange Expert

    Hi all

    I’ve had a few requests from members asking for a regular currency update on the Euro/Australian dollar. It appears lots of you have money transfer requirements from Euros into Aussie dollars and vice versa.

    Please see below for the latest update – thanks.

    The Euro vs Australian dollar

    The Aussie dollar put in a better performance, strengthening by three quarters of a cent against the euro. That only neutralised half the previous week's loss but it did show that the Australian dollar can go up as well as down.

    Neither Euroland nor Australia offered much in the way of useful economic data. Investors had to make do with tedious statistics such as the 7.1% increase in Australian vehicle sales and the rise in euro zone inflation from 1.4% to 1.6%.

    The Australian dollar's main boost came from Washington, where the US central bank chief was trying to play down fears of an early end to the $85bn-a-month he is currently pumping into the American economy. He reassured investors that the money tap will remain fully open for the foreseeable future, helping not only the US economy but also that of China, the country that buys the bulk of Australia's iron ore and coal exports.
     

  2. Moneycorp currency transfers
  3. John From Moneycorp

    John From Moneycorp Foreign Exchange Expert

    Hi all,

    Please find this weeks currency update below.

    The Australian dollar continued its yoyo oscillation, handing back the three-quarter-cent advantage it had squeezed out of the previous week. Compared with a month ago the Aussie is down by two and a half cents against the euro.

    It had a particularly difficult day on Wednesday. A reported slowdown in Chinese manufacturing was bad news because it suggested reduced demand for Australia's iron and coal exports from its biggest customer. Coming out at almost exactly the same time were figures showing a fall in Australia's inflation rate and bringing the threat of lower interest rates. Both stories made the Aussie less attractive to investors.

    The euro's advantage came from positive economic news. A monthly survey of firms across Euroland found a majority of them reporting a pick-up in business. Although the figures were only provisional, investors were pleasantly surprised and became better-disposed to the euro.

    The finalised data will be released this week, as will the equivalent Australian readings. But investors' main focus will be on the European Central Bank's press conference on Thursday afternoon. In recent months these monthly gatherings have often set the euro moving.
     
  4. John From Moneycorp

    John From Moneycorp Foreign Exchange Expert

    Hi all - the latest currency update is below, thanks.

    Neither the euro nor the Australian dollar had a hugely exciting week. It was the euro that narrowly won the contest, not because of the excellence of the Euroland economic statistics but because it avoided accidents. The euro strengthened by 3/16 of a cent against the Aussie, a rather less than commanding margin.

    Euro zone inflation figures last Monday got the euro off to a decent start. Although consumer prices went up by only 0.5% in the year to May, much less than the European Central Bank's target of 2%, the number confirmed the provisional reading released a fortnight earlier and came as something of a relief to investors, who had feared the rate of inflation could have been even lower. A weaker-than-expected index of investor sentiment in Germany was balanced by an above-forecast result for Euroland as a whole.

    Left to its own devices the Australian dollar would have had a tough week. There were only a couple of economic statistics to guide investors and they were not very good: New vehicle sales clocked a ninth successive month of decline and leading indicators from two financial institutions came in at +0.1% and -0.1%, netting out to indicate zero growth. As well as those handicaps, the Reserve Bank of Australia hinted that if there were to be an early change to interest rates it would be more likely to be a cut than an increase.

    However, the Aussie received help from outside. The US Federal Reserve renewed its commitment to keeping rates close to zero well into next year and Chinese manufacturers reported expanding activity for the first time in seven months. Investors saw both of those developments as positive for the Australian dollar.

    If the ecostat agenda is anything to go by, the week ahead will be another low-profile one for both currencies. There are no top-level Australian or euro zone figures on the list and no scheduled appearances by central bank luminaries
     

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