EUR/AUD - ratio Euro and Australian Dollar.
EUR/AUD can be attributed to cross-pairs, that is, the pair is based on the calculation through the US dollar, which complicates the work with this a currency pair and reduces its popularity among traders.
Designation
The symbolic designation of the Euro zone currency is€, the letter code is EUR, the Australian dollar is denoted by the symbol$, in order not to be confused, it is customary to put a sign first, then numbers, for example $100, or denote by the letter A$ or AU$. The Forkes market uses the letter code of the AUD currency.
Features
On the movement quotes of this pair are influenced by the states of two developed economies: the European Union and Australia.
The currency pair is traded, like all the others, on the international interbank market Forex 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 of European time zones. Splash volatility in the instrument is observed about 3 or 4 hours Moscow time at the opening of Asian exchanges. The Australian National Exchange opens earlier, but this causes movement in currencies only when important economic news is released at the time of its opening.
The currency pair does not ignore how European, and American session. However, the latter works out "not all", leaving in flat after the opening of the American stock exchanges in the absence of important news.
Impact of monetary policy
The Reserve Bank of Australia has a high base interest rate relative to the zero interest rate policy of the European Central Bank. This leads to positive charges swap provided that the pair is sold and debited when buying. The swap size is indicated in the contract specification, it is taken only from transactions held for more than a day.
The monetary policy pursued by national Central Banks is reflected in 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 of voicing the decision on rates 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.
Other information
In the international Forex currency market, the standard of calculation since the late 70s is the ratio of the national currency to 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).