EURAUD

Euro / Australian dollar

Consumer sentiment in Germany will continue to recover in the new year. A recent survey by the GfK institute showed that the government's actions aimed at mitigating the consequences of soaring energy prices appear to have been effective.

The country’s grid operator said that there was little prospect of power cuts in January as nuclear and hydroelectric output had rebounded and electricity demand had lowered.

Limiting natural gas prices in Europe threatens to lower shipments to the region and intensify the energy crisis. Additionally, the cap will make it difficult for European importers to significantly raise rates in order to secure LNG supplies.

The slump in Australia's real estate market, recorded after the COVID-19 pandemic, is likely to worsen next year. This is due to the need to cover mortgages taken in 2020-21, when interest rates reached their all-time lows.

Joachim Nagel, Bundesbank President, recently spoke on a time period inflation battling might take. In his recent statement, he asked the public of Germany to be patient, as fighting inflation may take time.