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.
Best EUR/AUD Brokers
Our latest tests point to these 4 brokers as the best for trading EUR/AUD:
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1FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2IGForex trading involves risk. Losses can exceed deposits.
Ratings
$00.01 Lots1:30 (Retail), 1:250 (Pro)FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFMCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentralPayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit CardUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD -
3Pocket Option50% Deposit Bonus
Ratings
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCash, AirtelUSD -
4InstaTrade
Ratings
$10.011:1000BVI FSCFISP, CFDs, Forex, Stocks, Indices, Commodities, Cryptos, FuturesInstaTrade Gear, MT4Visa, Mastercard, Wire Transfer, Credit Card, Debit Card, Bitcoin Payments, Ethereum PaymentsUSD, EUR, RUB
Here is a short overview of each broker's pros and cons
- 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.
- IG - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
- Pocket Option - Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.
- InstaTrade - InstaTrade, based in the British Virgin Islands, is an online broker specializing in fixed income structured products and active trading through CFDs. Its zero-spread accounts, excellent research notably through InstaTrade TV, and access to the popular MT4 alongside its own web-accessible InstaTrade Gear, make it an attractive option for short-term traders at every level.
FOREX.com
"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."
Christian Harris, Reviewer
FOREX.com Quick Facts
Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
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Demo Account | Yes |
Instruments | Forex, Stocks, Futures, Futures Options |
Regulator | NFA, CFTC |
Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
Minimum Deposit | $100 |
Minimum Trade | 0.01 Lots |
Leverage | 1:50 |
Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Currency Pairs | USD/CNH, EUR/CNH, AUD/CNH, CNH/JPY, EUR/AUD, EUR/SGD, EUR/TRY, EUR/CAD, EUR/GBP, GBP/AUD, GBP/CAD, GBP/JPY, GBP/ZAR, USD/HKD, USD/SGD, USD/THB |
Pros
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
Cons
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
- There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
IG
"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."
Christian Harris, Reviewer
IG Quick Facts
Demo Account | Yes |
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Instruments | CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting |
Regulator | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM |
Platforms | Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral |
Minimum Deposit | $0 |
Minimum Trade | 0.01 Lots |
Leverage | 1:30 (Retail), 1:250 (Pro) |
Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD |
Currency Pairs | USD/CNH, EUR/AUD, EUR/JPY, EUR/SGD, EUR/TRY, EUR/CAD, EUR/GBP, GBP/AUD, GBP/CAD, GBP/HUF, GBP/INR, GBP/JPY, GBP/ZAR, USD/HKD, USD/INR, USD/MYR, USD/SGD, USD/THB |
Pros
- The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading
- IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
- As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
Cons
- While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
- Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
- Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
Pocket Option
"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."
Jemma Grist, Reviewer
Pocket Option Quick Facts
Bonus Offer | 50% Deposit Bonus |
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Demo Account | Yes |
Instruments | Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos |
Regulator | MISA |
Platforms | Web, MT4, MT5 |
Minimum Deposit | $50 |
Minimum Trade | $1 |
Account Currencies | USD |
Currency Pairs | EUR/AUD, EUR/JPY, EUR/TRY, EUR/CAD, EUR/GBP, GBP/AUD, GBP/CAD, GBP/JPY, USD/INR, USD/MYR, USD/SGD, USD/THB |
Pros
- Extremely fast and smooth sign-up process that takes less than 2 minutes
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
- The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks
Cons
- Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
- The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
- You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
InstaTrade
"Although InstaTrade offers active trading on a comprehensive platform, it stands out with its fairly unique Fixed Income Structured Product (FISP), providing passive investment opportunities with up to 50% returns in 6 months if conditions are met. "
Christian Harris, Reviewer
InstaTrade Quick Facts
Demo Account | Yes |
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Instruments | FISP, CFDs, Forex, Stocks, Indices, Commodities, Cryptos, Futures |
Regulator | BVI FSC |
Platforms | InstaTrade Gear, MT4 |
Minimum Deposit | $1 |
Minimum Trade | 0.01 |
Leverage | 1:1000 |
Account Currencies | USD, EUR, RUB |
Currency Pairs | AUD/MXN, EUR/AUD, GBP/HUF, GBP/ZAR, USD/INR |
Pros
- Despite an average investment offering of around 300 assets, InstaTrade offers a particularly strong suite of currency pairs, catering to advanced traders seeking opportunities in volatile exotics.
- VPS hosting caters to algo trading strategies with a dedicated physical server providing rapid execution speeds as low as 9 milliseconds.
- InstaTrade delivers an excellent suite of charting tools for day traders with its web trader comprising 250+ indicators, 11 chart types and a user-friendly design.
Cons
- InstaTrade sports one of the most cluttered websites and client cabinets in the industry, potentially overwhelming new traders, especially compared to XTB’s intuitive trading journey and resources.
- InstaTrade is registered in the offshore jurisdiction of the British Virgin Islands, resulting in limited regulatory safeguards for retail investors.
- Profits are only guaranteed in the FISP if investors do not reach the 50% profit level and attract other users with a total sum of $4 for each dollar in compensation.
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.
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.
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.