EUR/AUD - the ratio of the Euro to the Australian dollar.
EUR/AUD can be attributed to cross-pairs, that is, the pair is based on calculation using the Us dollar, which makes it more difficult to work with this currency pair and reduces its popularity among traders.
The symbol for the Euro Zone currency is €, the letter code is EUR, the Australian dollar is indicated by the symbol $. to avoid confusion, it is customary to put a sign first, then numbers, for example $100, or indicate the letter A$ or AU$. The Forkes market uses the letter code of the AUD currency.
The pair's price movements are influenced by the States of two developed economies: the European Union and Australia.
The currency pair is traded, like all others, on the international interbank Forex market 24 hours a day and five days a week. The peculiarity of this pair is the ability to trade it "at night" from the point of view of traders in European time zones. A surge of volatility in the instrument is observed around 3 or 4 hours Moscow time at the opening of Asian exchanges. The Australian national exchange opens earlier, but this only causes movement in currencies when important economic news is released at the time of its opening.
The currency pair does not ignore both the European and American sessions. However, the latter works out "not all", going flat after the opening of American exchanges in the absence of important news.
Impact of monetary policy
The reserve Bank of Australia has a high base discount rate relative to the European Central Bank's zero interest rate policy. This leads to positive swap charges when the pair is sold and debited when it is purchased. The swap size is specified in the contract specification and is taken only from transactions held for more than a day.
Monetary policy pursued by national Central banks is reflected in the exchange rate, forming long-term and medium-Term trends. Therefore, traders follow the forecasts, statements and promises of members and heads of Central banks. The moment when the bid decision is announced causes intense price movements and an increase in trading volume in the markets. In addition to the decision itself, the final press conferences of the Central Bank's leaders may cause a subsequent violent reaction in the national currency markets.
In the international Forex market, the standard of calculation since the late 70s is the ratio of the national currency to the US dollar. Later (by recalculation), so-called cross-pairs were introduced, the ratios of which did not contain USD. Thus, the pair we are considering belongs to the named type. The pair has a decimal dimension with one decimal place and up to five decimal places (some brokers have up to 4 digits).