The Australian Dollar (AUD) has regained momentum over the last couple of days against the Euro (EUR) reversing from 0.6435 (1.5540) to reach 0.6500 (1.5380) into Friday. Risk on Aussie buying with equity markets higher, the main driver. Meanwhile French and German manufacturing reads were mixed and still well below key 50.0 around 49.1 and 46.7 confirming continued contraction for businesses. Earlier Governor Lowe spoke of pending higher inflation which will result in lower growth over the coming months. He is concerned about a rise to wages as workers demand better pay. This in turn could lead to higher inflation, something he will be desperately hoping to avoid. Downside risks to the AUD remain.
The current interbank midrate is: AUDEUR 0.6497 EURAUD 1.5391
The interbank range this week has been: AUDEUR 1.5359- 1.5526 EURAUD 0.6440- 0.6510