EUR/AUD - Euro / Australian Dollar - Forex Currency Pair

EUR/AUD Quotes

EUR/AUD News

The EUR/AUD Currency Pair (Euro / Australian Dollar) is the exchange rate of the Euro expressed in Australian dollars. It expresses the value of one Euro in Australian Dollar.

The EUR/AUD represents less than 1% of total transactions on the FOREX in 2010. The pair EUR/AUD is deemed to be related to changes in gold prices. In fact, Australia is the 3rd largest gold producer in the world and as such, when gold prices decline, the Australian dollar decreases. It was found a positive correlation of 84% with gold between 1998 and 2008.

The Australian dollar has also a strong positive correlation with the New Zealand Dollar with nearly 96% between the AUD / USD and the NZD / USD. This can be explained by the fact that Australia is a preferred business partner because of its proximity. If Australia is economically healthy, exports from New Zealand will increase and this will have a beneficial effect on economic growth.

The Euro has a less prominent role on the evolution of the pair. However, economic announcements in the Eurozone will have a direct impact on the pair EUR/AUD.

The pair EUR/AUD is quoted in 4 decimal places but you can sometimes find 5 with some brokers. The exchange rate is floating and therefore subject to the law of supply and demand on the interbank forex market.

Both central banks linked to the pair Euro / Australian dollar are the Australian Central Bank for the AUD and the European Central bank (ECB) for the EUR. Both banks rarely intervene directly to make change the price of the pair. However, all decisions taken by these two central banks have a strong impact on the evolution of parity EUR/AUD (change in interest rates, asset buyback program....)

EURO (EUR):

The Euro is the currencies of the countries member of the European Union which have adopted the Euro. The Euro was introduced on January 1st 2002 in 11 countries and gradually other countries have also adopted the Euro as shown in the map below:

The euro is the second most traded currency on the Forex. It is present in 39.10% of transactions in 2010. Its overall share in the number of transactions increases gradually each year but still far from the dollar and its hegemony. In 2004, the euro was present in 37.40% of transactions on Forex. The Euro is a currency of reference both in the foreign exchange market and in international trade. The euro is also the first currency in terms of banknotes in circulation.

The Euro is however considered as a currency risked. Investors buy the euro if they think the global economy is healthy. However, in times of crisis, the dollar appreciates against the euro. Indeed, the dollar is considered a safe haven.

The Euro (EUR) is controlled by the European Central Bank (ECB) which is responsible for making monetary policy decisions.

AUSTRALIAN DOLLAR (AUD):

The Australian Dollar (AUD) is the national currency of Australia. The Australian Dollar is the 5th most traded currency on Forex, behind the British Pound. The CAD is present in 7.60% of total transactions on Forex in 2010.

Its notoriety is largely due to the fact that Australia is the 3rd largest gold producer. The Australian dollar is strongly influenced and correlated with gold prices. In times of crisis, the AUD is therefore indirectly a safe investment because gold is regarded by investors as well. We note also that since 2008 the Australian dollar has appreciated considerably to break records to be above the parity at the same time as the price of gold which also broke records.

You can see below a 5 Australian Dollar banknote:

The Australian Dollar is controlled by the Central Bank of Australia which is responsible for making monetary policy decisions.