Trading EUR/AUD

The EUR/AUD currency pair provides an opportunity for traders thanks to the size of the component economies and the isolation of the pair from the US dollar. As one of the most popular forex pairs, there is a wealth of information available to assist traders in the form of charts, historical data, and expert technical analysis.

This guide will provide a discussion of the key economic impacts on EUR/AUD exchange rates as well as live chart investing strategies. We also list the top brokers and supporting platforms.

EUR/AUD Trading Brokers

  1. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  2. Vantage - Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
  3. IC Markets - IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
  4. AvaTrade - AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
  5. FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.

Trading EUR/AUD Comparison

Trading EUR/AUD Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator Visit
OANDA US logo
65+ 1.6
$0 NFA, CFTC Visit
Vantage logo
55+ 0.0
$50 FCA, ASIC, FSCA, VFSC Visit
IC Markets logo
75 0.02
$200 ASIC, CySEC, FSA Visit
AvaTrade logo
50+ 0.9
- ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM Visit
FOREX.com logo
80+ 1.2
$100 NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA Visit
Pepperstone logo
100+ 0.1
$0 FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB Visit
XM logo
55+ 1.6
$5 ASIC, CySEC, DFSA, FSC, FSCA Visit
Eightcap logo
50+ 0.0
$100 ASIC, FCA, xCySEC, SCB Visit
PrimeXBT logo
45+ Variable
$0 - Visit
IQ Option logo
60+ 14 pips
$10 - Visit
IG logo
80+ 0.8
$0 FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA Visit
FxPro logo
70+ 1.58 pips (Ave)
$100 FCA, CySEC, FSCA, SCB, FSC Visit
FXCC logo
70+ 0.2
$0 CySEC Visit
XTB logo
70+ 1.0
$0 FCA, CySEC, KNF, CNMV, DFSA, FSC Visit
Plus500 logo
60+ 0.6
$100 FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA Visit

#1 - OANDA US

Why We Chose OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • GBPUSD Spread: 3.4
  • EURUSD Spread: 1.6
  • EURGBP Spread: 1.7
  • Total Assets: 65+
  • Leverage: 1:50
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist

#2 - Vantage

Why We Chose Vantage

Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.

"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."

- DayTrading Review Team
  • GBPUSD Spread: 0.5
  • EURUSD Spread: 0.0
  • EURGBP Spread: 0.5
  • Total Assets: 55+
  • Leverage: 1:500
  • Platforms: ProTrader, MT4, MT5, TradingView, DupliTrade

#3 - IC Markets

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • GBPUSD Spread: 0.23
  • EURUSD Spread: 0.02
  • EURGBP Spread: 0.27
  • Total Assets: 75
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade

#4 - AvaTrade

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, from CFDs to AvaOptions and now AvaFutures, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • GBPUSD Spread: 1.5
  • EURUSD Spread: 0.9
  • EURGBP Spread: 1.5
  • Total Assets: 50+
  • Leverage: 1:30 (Retail) 1:400 (Pro)
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade

#5 - FOREX.com

Why We Chose FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • GBPUSD Spread: 1.3
  • EURUSD Spread: 1.2
  • EURGBP Spread: 1.4
  • Total Assets: 80+
  • Leverage: 1:400
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral

Chart

The Euro

The euro is the official currency of the eurozone, and has been in place since 1999, when it was used by 11 member states of the European Union (EU). Since then, a further eight members, including four outside the EU, have adopted the euro.

By May 2022, the euro was the second most traded currency, after the US dollar, being involved in 32.3% of all forex trades. The euro is controlled by the European Central Bank (ECB), which is responsible for monetary policy decisions and implementation.

By far, the biggest sector of the EU economy is services, accounting for 74.7% of GDP, followed by manufacturing at 23.8% and agriculture at just 1.5%. The strength of the euro tends to correlate directly to European economic activity, with more activity leading to a stronger currency.

The Australian Dollar

The Australian dollar is the currency not only of Australia but also the Cocos Islands, Norfolk Island, Christmas Island, Tuvalu, Kiribati, and Nauru.

The Australian dollar is the fifth most frequently traded currency in the world, involved in 6.8% of trades. The AUD has been a free-floating currency since 1983. The country’s economy is dominated by the services sector, which accounts for 66.28%. However, the agriculture and mining sectors are also important, taking a 27.47% share of GDP.

Australia is the second-largest producer and exporter of gold, resulting in a correlation between the price of gold and the strength of the AUD. Hence the Australian dollar is often referred to as a commodity currency.

EUR/AUD; A Minor Pair

The euro-Australian dollar is known as a minor cross pair. This is due to its isolation from the USD. Because of the strong global position of the currencies in the G8, it is also not an exotic pair.

Importantly, minor pairs such as the EUR/AUD cheapen the conversion from one currency to the other as there is only one swap required, rather than needing to convert to USD and then back to the other currency.

The popularity of minor pairs for forex trading comes from their isolation and the variation in the strength of the currencies. Generally, minor pairs are more volatile than major ones, and they allow traders to take advantage of big swings in conversion rates.

As for records, the EUR/AUD set an all-time high in October 2008 at 2.11 and an all-time low in August 2012 at 1.16.

EUR/AUD Influencing Factors

A bountiful resource for informing EUR/AUD investment strategies is presented by economic news. There are a range of regularly released reports, statistics, and graphs, as well as major political and economic events, that can impact conversion rates.

Inflation

Inflation affects all currencies, with a high inflation rate relative to other economies usually correlating to a weakening currency. The best way to measure the inflation of the European and Australian economies is through the published Consumer Price Indexes (CPIs).

Generally, the core CPIs are used by traders to inform predictions, as these exclude energy and food, which are much more volatile.

France and Germany account for 42.3% of the eurozone’s GDP after Brexit, making them significant players in the EUR/AUD pair. These two countries release their own CPI Flash Estimate (France) and Preliminary CPI (Germany) two weeks before the official CPIs, which can help inform investment decisions.

As the world is recovering from the effects of the Covid-19 pandemic, many countries have adopted higher interest rates. This has affected consumer purchasing power, making goods and services more expensive. Note, analysis of the eurozone should take into account the interest rates of all its members.

Economic Growth

The overall outputs of the relevant economies have a major impact on the exchange rates between EUR and AUD. In simple terms, if the Australian economy performs better than the European economy, the AUD will strengthen against the EUR, and vice versa for European growth.

The GDP is often the best measure of economic strength and growth, with a high GDP indicative of a strong and healthy economy. The eurozone releases a quarterly GDP report two months after the end of each quarter. The Australian National Accounts (ANA) report details key economic flows and is also released two months after each quarter’s end.

Monetary Policies

Monetary policies implemented by the controlling bank of a currency can have a direct effect on the performance of its economy but also an indirect impact on exchange rates.

Big differences in the policies implemented by the Reserve Bank of Australia (RBA) and the European Central Bank (ECB) can change the long-term forecasts of the EUR/AUD exchange rate. This can produce volatility thanks to the opportunity it provides for speculation.

The best tools to follow for the eurozone’s policies are the press releases from the ECB regarding new updates. In particular, the language used by the ECB president in the Q&A section has the largest effect. For example, if the president seems concerned about inflation, interest rates may get raised in the future, and the euro will likely appreciate.

A good example that deeply impacted the EUR was the quantitative easing policies implemented by many countries in Europe during Covid-19.

Politics

Political events in major economies within the EU and the world can influence the exchange rates of a large number of currencies and forex pairs, not just those directly affiliated with the affected economy. For example, the uncertainty and instability following the Brexit referendum had big impacts on the GBP and EUR. However, swings in other pairs, such as the USD/AUD, have been the result of movements directly attributed to Brexit.

One opportunity for political influence on the EUR’s strength comes from the fact that the euro area is comprised of many countries. This can sometimes cause disagreements amongst the component governments about the future of the currency, the European economy, and the best monetary policies. These arguments tend to cause a weakening in the euro, thanks to the resulting uncertainty.

Currently, the Ukrainian-Russian war is affecting the pair because of the close proximity of Ukraine to the eurozone. The EUR/AUD has also been weakened by higher oil prices, which are a result of the conflict.

Balance of Payments

The balance of payments in a country consists of three accounts: the current account, capital account, and financial account. When analyzing forex trends, the current account is the most important as it details the trade balance, income payments, and other payments between one economy and the rest.

The current account is typically either in surplus or deficit. A deficit means more money is leaving the economy than entering it, which occurs when imports exceed exports and is negative for the currency’s strength. A surplus is the opposite, with more exports and positive effects on the currency.

The eurozone releases a report on the current account status every month. France and Germany also release independent reports each month, which some investors focus on. The Australian Bureau of Statistics releases a report on its balance of payments each quarter.

Sentiment

Another approach for attempting to predict EUR/AUD price movements is with confidence and sentiment reports. Australian economic sentiment can be gauged using the Westpac Consumer Sentiment Index, which asks 1200 consumers how optimistic or pessimistic they are about the future of the Australian economy. Germany produces a widely followed sentiment report within the eurozone called the ZEW. This asks 350 financial experts what they predict for the future health of the economy, split into positive, negative, or no change.

Many analysts will have predictions for these report results. If the report exceeds expectations, the currency is likely to strengthen and likewise weaken for an underwhelming result.

For retail traders, some brokers may even provide a depiction, like the EUR AUD IG client sentiment, in order to make it easier for investors.

Trading The EUR/AUD

Optimum Window

One of the attractive features of forex investing is its availability for 24/7 trading. This being said, it isn’t always a good idea to invest in EUR/AUD regardless of the time of day. The best time to trade currencies is usually when they are most volatile and most liquid, as this brings the spreads down.

While there is no overlap between the Sydney and London sessions, historical data suggests investing and trading volumes are at a maximum during the overlap between the London and New York sessions (1300-1700 GMT). However, there are times of increased volatility and opportunity immediately after major economic releases for the European and Australian economies.

EUR/AUD Strategies

No perfect investing strategy for EUR/AUD exists, with exchange rates affected by a myriad of factors, including impossible-to-predict human factors.

There are many forex strategies online. Some entail technical EUR/AUD analysis based on pivot points and geometric patterns in live charts spanning 1 minute to 10 years.

When considering trading strategies and tools developed by other people, the best advice is to do your own due diligence. You should always verify facts and endeavor to understand the underlying factors influencing price changes.

Forex Brokers

Many of the best forex day trading platforms today offer a suite of EUR to AUD trading tools, including pip calculators and historical data such as 12 months, 5 years, 10 years, and 20 years charts.

Money converters, real-time trading ideas, the 1 EUR to AUD exchange rate history, and live graphs for plotting support and resistance levels are also available. Additionally, alongside live buy or sell quotes, some providers have futures products, next week forecasts, and longer-term predictions.

Always do your own research to find a broker that offers value in the areas you need.

Final Word On Trading EUR/AUD

The EUR/AUD, being a minor cross pair, offers volatility that traders would struggle to find with pairs involving the USD. There are vast resources available providing information on these two currencies, including major economic reports, outlook predictions, and trading strategies. While these can all help inform any investment decisions, tread lightly when using third party resources for EUR/AUD, as technical analysis that is valid today may not accurately represent a weekly forecast or be able to signal exchange rates later in 2024.

FAQs

What Is The Meaning Of EUR/AUD?

The euro is called the base currency for this forex pair while the Australian dollar is the quote currency. The quote currency tells you how much is required to buy the specified quantity (usually 1) of the base currency. If a EUR/AUD quote of 1.56 is given, this can be considered as 1.56 AUD per 1 EUR.

What Is The Best Time To Trade EUR/AUD?

There is no single best time to trade a particular forex pair, as swings can be influenced by any number of factors. However, times of high liquidity and volatility tend to offer the lowest spreads, which for EUR/AUD generally occurs between 13:00 and 17:00 GMT.

What Is A Commodity Currency?

A commodity-based currency has a large dependence on a particular resource. The Australian dollar is often called a commodity currency due to its massive export of gold and the importance of its mining sector.

How Can I Predict The Future EUR/AUD Swap Rate?

When deciding whether to sell or buy, our ‘Influencing Factors’ section details some of the most important economic indicators for projections of EUR/AUD exchange rates. Also available are historical spot rate data from trading charts and strategies that can be used for day trading.

What Is Today’s Conversion Rate For The EUR/AUD?

The FX spot rate for the pair varies each minute. See a live chart for the latest data. This can be used as a EUR-AUD dollar converter in both directions. To calculate the value of a pip, simply divide 0.0001 by the exchange rate and multiply the result by the lot size.