Currency Calculator by Send Money Home.

GBP Flag
1 GBP = 1.12777 EUR
EUR Flag
1 EUR = 0.8867 GBP

View Providers Switch Currencies

Australian Dollar-Euro Exchange Rate Boosted by Less Dovish RBA

Send money home free transfer voucher

Australian Dollar-Euro Exchange Rate Boosted by Less Dovish RBA

Last month, Australian foreign reserves were reported to have hit very low records, falling sharply from around 76.1 billion to 68.6 billion. Despite this discouraging report, which was released on Tuesday this week, the Australian Dollar-Euro Exchange Rate has not been affected in any way.

Investors across Europe, who had feared that the worst would happen, were instead surprised by the Reserve Bank of Australia’s less dovish tone after this month’s policy meeting. The resilience of recent growth data and domestic trade is seen as the major factor that has improved the outlook for the domestic economy.

This development encouraged Australian policymakers to maintain a neutral view when it comes to commenting on monetary policy. This in turn naturally boosted the demand for the Australian dollar in spite of the discouraging report about the foreign reserve data.

Meanwhile, confidence in the Euro currency was low due to the rising tension involving the deadlock between Greece and its ever-growing list of creditors. The annual review of the Greek economy carried out by the International Monetary Fund (IMF) lead to fresh concern that Greece will be expected to put it in place strict measures in exchange for continued support. While the International Monetary Fund advocated for debt relief, the sign of the further split of opinions on the Executive Board was a major determining factor on the appeal of the single currency.

Australian Dollar-Euro Exchange Rate Forecast: Reserve Bank of Australia’s Monetary Policy Statement in Focus

A lack of fresh data on Eurozone is likely to support the Australian Dollar-Euro exchange rate in the coming months, with investors in Australia and across Europe still discouraged by the dovish comments. These comments were made by Mario Draghi who is the President of the European Central Bank (ECB). Hope has dwindled for today’s raft of German trade data, which is expected to extend the Euro’s continues weakness if the trade surplus is found to have reduced significantly at the end of 2016.

Fresh signs of weakness in European countries with strong economies are expected to severely compromise the demand for the single currency, especially if domestic political worries continue to mount.

The Reserve Bank of Australia’s monetary policy statement is also expected to offer a fresh boost to the antipodean currency in the next few days, particularly if the inflation forecasts and latest growth prove positive. However, if the outlook of the Australian policymakers proves to be a little more muted, then the Australian Dollar-Euro exchange rate may struggle to maintain its recent positive trend.

Sooner rather than later, should signs continue to point towards the Australian Federal Reserve raising interest rates then the AUD could face greater softness, with tighter United States monetary policy unlikely to benefit the antipodean currency.

Current Interbank Australian Dollar Euro Exchange Rates

At the time of publishing this news article, the Australian Dollar-Euro exchange rate was enjoying positive records making strong gains of approximately 0.71, while the EUR AUD (Euro Australian Dollar) exchange rate was slumped in the region of 1.39.

© 2017 : All Rights Reserved
Send Money Home Registered Office 334 Southend Road, Wickford Essex SS11 8QS. Trading Office 83 Ducie Street, Manchester M1 2JQ. +44 (0) 844 357 4755 - Email Us