Euro spikes on German industrial data

Better than expected economic data coming out of Germany has seen the euro rally, although gains are likely to remain limited as the European Central Bank moves to further ease monetary policy.

German industrial orders for March increased by 2.2 per cent on a month earlier and as a result the euro spiked as high as $1.3123. On Monday the single currency fell following an announcement by ECB boss Mario Draghi that he would be watching data from the eurozone closely and was prepared to cut interest rates further.

The euro settled at 130.23 yen, a rise of 0.2 per cent. The dollar remains static against the Japanese currency at 99.25 yen, still unable to break the 100 yen mark.

A rate cut by the Reserve Bank of Australia has driven the Aussie dollar to its lowest level in two months. The currency could be further hit if the central bank decides to cut rates further. The Aussie is currently trading down 0.7 per cent at $1.0165.

Across the Tasman the Kiwi dollar also fell following complaints by New Zealand’s central bank that the currency is overvalued. The Kiwi fell from $0.8456 to $0.8435 following central bank concerns.