EUR/AUD

The EUR/AUD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR and the Australian dollar of the Commonwealth of Australia (symbol $, code AUD).

The pair’s rate indicates how many Australian dollars are needed in order to purchase one euro. For example, when the EUR/AUD is trading at 1.5000, it means 1 euro is equivalent to 1.5 Australian dollars.

The euro (EUR) is the world’s second most traded currency, while the Australian dollar (AUD) is the world’s fifth most traded currency, resulting in a moderately liquid pair.

Overall, the majority of forex brokers maintaining spreads between 1.5 to 4 pips.

Even though at times the range of the EUR/AUD can seem fairly subdued, it can and does provide lots of volatility, with daily ranges often exceeding 300 pips.

What Affects the EUR/AUD?

There are several factors that affect the EUR/AUD. Most commonly, this includes key economic news or reports that influence the pair.

This includes such releases as the Consumer Price Index (CPI) for the Eurozone, which gives an idea of changes in the price of goods and services.

Additionally, the Westpac Leading Index for Australia is noteworthy as it tracks the growth of a combined index that considers nine barometers of economic activity.

The AUD is also affected by commodity prices, government credit ratings, and overall sentiment and risk appetite.

The EUR/AUD is one of the most difficult pairs to trade in the forex market. This is due not only to wide swings that can define the pair but also their inconsistency in frequency.