Live and Historical EUR/AUD Rates
The following chart represents the value of the Euro against the Australian dollar (AUD), also known as the Aussie Dollar-how many Aussie Dollars can purchase one Euro. The Euro maintains a higher value than the Aussie Dollar, and AUD has tended to follow the direction of the American dollar more than the Euro. EUR/AUD is not considered a major pair.
The Euro came on the world scene in 1999 and since been adopted by 21 European countries (327 million people) as their currency. The Euro has gained the distinction of having the highest volume of economic value circulated in any world currency. After the US dollar, the Euro is the second largest reserve currency and the second most traded. The European Central Bank (ECB) in Frankfurt, which controls the Euro, has allowed the Euro to respond to the market with very little ECB influence. It remains to be seen whether Europe’s experiment with one currency will be successful. Exports have significant influence on the Euro, as do the Eurozone’s most important industries: services, agriculture, and tourism.
The Australian Dollar
In 1966 the Australian pound became the Australian dollar, providing Aussies with a decimal currency. The new dollar kept a fixed exchange rate pegged to the British pound sterling until 1971. The Australian Dollar is one of the ten most popular currencies in foreign exchange because of the diversification it provides. Factors that contribute to the Aussie Dollar’s popularity are Australia’s economic and political stability, high interest rates, and general freedom from government control. The Reserve Bank of Australia (RBA) controls the Aussie. The Aussie exchange rate fluctuates with the price of Australia’s main exports: minerals and agricultural products, making it a commodity currency. The Aussie dollar also provides access to the Asian economies-Australia’s primary trading partners. The continual movement of prices of these exports has made the Aussie a very popular currency for trade.
The EUR/AUD pair is not considered a major trading pair, but it has grown in popularity since the introduction of the Euro in 2001. Major European banks chose Sydney as a place of business making the EUR/AUD trade increasingly popular. Naturally any factors that influence either economy affect the pair, as well as the differential between the interest rates of the ECB and the RBA. The general stability of both the Euro and the Aussie has not made the EUR/AUD popular for carry trades. The EUR/AUD is not considered a major pair because of its relatively low volume.