EURAUD (EURAUD^)

Pairing – The amount of Australian dollars (AUD) that one can buy for every European euro (EUR).

Position

EUR – World’s second most traded currency

AUD- World’s fifth most traded currency

Important factors

• Economic factors – After its introduction in 1999, the euro saw great success which has taken it to its place as the second most traded currency in the world. However, the debt crisis led many experts to suggest that the currency being shared by so many countries is not healthy for the euro, or the countries involved. Australia, conversely, has an economy that is known for its constant stability, which mean this is a pairing that can fluctuate heavily due to the Eurozone economy.
• Political stability – The fact that the euro is used by a collection of countries means that the political situation in any one can have an effect on the currency.
• Trade – Conversely, the Australian dollar is enjoying a far more stable period, with its trade deals with Asia and the price of gold, copper, and nickel having a positive effect on the dollar.