EUR/AUD: Euro vs Australian Dollar (EUR/AUD)

📜 History

The Australian dollar was floated on 12 December 1983 under the Hawke government, with Paul Keating as Treasurer, ending its fixed exchange-rate regime. The euro was introduced as an accounting currency on 1 January 1999, when the currencies of eleven EU countries were fixed to it. Euro banknotes and coins entered circulation on 1 January 2002. Because both currencies float freely, EUR/AUD became a liquid cross pair traded in the interbank market. The 2008 global financial crisis hit both economies and caused large swings in risk assets. The eurozone debt crisis of 2010 to 2012 weakened the euro against many currencies. In March 2020, the COVID-19 shock caused sharp moves in both AUD and EUR as markets sold risk assets.

⚙️ What moves the price

• →ECB interest rate decisions and guidance on eurozone inflation.
• →RBA cash rate decisions and Australian employment and inflation data.
• →Eurozone GDP, inflation and PMI releases compared with Australian data.
• →Commodity prices, especially iron ore and coal, which support the Australian dollar.
• →Global risk sentiment: the AUD often weakens when markets fall and strengthens when they rise.

Character

• •Cross pair: moves reflect two separate economies, so trends can last for long periods.
• •Moderate volatility in most periods, with larger moves on major policy or shock news.
• •Liquidity is good during European hours but drops later in the day, and spreads can widen.
• •Often correlated with EUR/USD and AUD/USD, so exposures to these pairs can overlap.

When to trade

• ✅European session, especially the London morning, when euro liquidity is highest.
• ✅Around ECB and RBA meetings and key data releases, with clear risk controls in place.
• ✅Early Sydney and European overlap, when Australian news reaches the market.

When not to trade

• ⛔Thin late-evening or holiday trading, when spreads widen and gaps are more likely.
• ⛔Holding through central bank decisions without a stop-loss or a plan.
• ⛔Treating a cross as low risk: it carries exposure to two currencies and to risk sentiment.

Our verified setups

Latest closed signals

• BUY · M15 · TP503/11+$489
• BUY · H1 · BE30/10−$6
• SELL · M15 · TP527/10+$495
• SELL · H1 · TP527/10+$485
• SELL · H1 · SL26/10−$111

📊 Weekly report

Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.