Why is the EUR/AUD an important market?
This currency pair between a Euro and an Australian Dollar is the most commonly used in the foreign stock exchange. Newbies and veterans love using this pair since it generates earnings and it is not a complex one to trade with. If you get into the foreign exchange market try trading with the largest currency pair.
When to trade using the EUR/AUD
The foreign exchange market is active 24/7, but normally when it comes to the UK the market tends to open at 8.00 AM hand closing at 5.00 PM. There are occasions when trading is so active especially during the main market announcements. The most suitable time to try out trading using the currency pair would during this time.
Understanding the EUR/AUD trading involves a counter rate price in which the Australian Dollar can be exchanged for a Euro. The value of the two currencies can be speculated as an Australian dollar per the estimated Euro.
Below we will be looking at how the EUR/AUD trading came to be and the different factors that can influence the pair and what keeps it going.
The History of EUR/AUD
Regardless of being a new currency pair, it has proved unstoppable and unbeatable with the increasing number of traders who are trading with it. Given the financial analysis done on the foe for traders compared to other currency pairs.
Australia is the most popular and largest coal and iron generator. The price of the commodity is affected by the transportation of the currency. Back in the year 2015 when the commodity deprived it affected the price of the oil resulting in a decrease together with the iron and coal prices too. This resulted in the fall of the Australian Dollar with a higher rate than 15% affecting the economic sector of this country. A country’s economy is the backbone of every country without it nothing ever seems to work effectively.
The Euro came to be during the start of the 20th Century but wasn’t that common until the final years of the century. Starting as an automated currency then later becoming a normal and manual digital with coins and notes. It was widespread all around Europe and within no time it became the default currency in the continent.
Before Australia used the Australian Pound that was popular during the ‘40s but later during 1960 it was changed since they wanted to do away with imperialism. Its proximity to China greatly affected the AUD because of the imports and exports made.
Factors affecting the EUR/AUD
The role of the Euro. The exchange and the interest rates of the currency are crucial in the trading. The European Central Bank is the decision-maker when setting the exchange rates of the currency determining the direction of policy.
The role of the Australian Dollar is key. Most of the economic and political effects are evident while trading using the AUD. This currency has over time stayed strong and unbeatable due to the number of imports and exports the country has been making. The Reserve Bank contributes a lot when it comes to setting the worth of the Dollar.
