EUR/USD Stable, AUD/USD Hits New 2014 High

The euro held gains versus most of its major counterparts before a report today that may show business confidence in Germany, the region’s biggest economy, held near a 2 1/2-year high.

Europe’s shared currency remained higher versus its U.S. peer before European Central Bank President Mario Draghi speaks today and after data yesterday signaled growth in manufacturing and services in the region stayed close to the fastest in almost three years. Australia’s dollar rose to its strongest level this year, while its New Zealand peer strengthened for a third day, as a measure of currency volatility dropped to the least since 2012, supporting higher-yielding assets.

“The euro is resilient,” said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “We don’t have any catalysts to sell the euro for the near term” as the ECB is likely to remain on hold, Yamauchi said.

The euro was little changed at $1.3833 as of 10:39 a.m. in Tokyo after climbing 0.3 percent yesterday, the biggest one-day advance since March 14. It bought 141.36 yen, following a 0.3 percent gain to 141.49 in New York. The Aussie traded at 91.44 U.S. cents from 91.33 yesterday. It earlier rose to 91.58, a level unseen since Dec. 10. New Zealand’s kiwi added 0.2 percent to 85.59 U.S. cents.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu