The EUR/AUD pair reached its all-time low in 2012, hitting A$1.16, largely due to the European debt crisis. Since then, the pair has risen significantly, reaching A$1.86 in 2020.
The Australian dollar is the currency of Australia and its external territories, as well as of several independent Pacific Island states. It is used as legal tender in Australia. AUD depends heavily on the price of commodities of which Australia is a major exporter, namely iron ore, coal, natural and petroleum gas, gold, and aluminium oxide. Changes in the prices of those commodities will affect the Australian dollar.
The euro is the official currency of most member states of the European Union. The eurozone, as the group of European states using the euro is known, includes approximately 350 million people and has a diversified and complex economy. The euro is popular with Forex traders. It is the second-most traded currency in the world after the U.S. dollar. Any major crisis in one or several member states of the European Union will affect the rate of the euro. When conducting a fundamental analysis of the currency, the economic indicators of Germany, France, Italy and Spain should be considered first as having the most weight in the eurozone economy.
Factors affecting the EUR/AUD rate include general economic indicators, such as information on employment, inflation data, retail sales, industrial production, trade balance and the release of GDP data, as well as the central bank decisions regarding the interest rates in the Eurozone and Australia. Political events, natural disasters and various government policies can impact the EUR/AUD exchange rate significantly.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
