Euro / Australian Dollar - EUR/AUD

On the Forex, the Australian Dollar (AUD) is mainly dealt in the form of the AUD/USD cross, and its fluctuations really depend on the health of the countries of Pacific Asia (Japan and South East Asia) which are the main trade partners of Australia, but also and over all on the farm raw material exchange rates as Australia is an important farm raw material exporter.

More over, the high key interest rates decided by the reserve bank of Australia from 2000 to 2008 in comparison with the other great central banks’ ones, have contributed for a long time to a “strong” Australian Dollar , or in any case an Australian Dollar that continuously appreciates against the USD.

Since 2001, the fluctuations of the EUR/AUD cross didn’t totally followed these great structural data concerning the exchange value of the Australian dollar.

From an exchange value EUR/AUD = 1.6915 in January 2001, the cross reaches the level EUR/AUD = 1.90000 (12% depreciation of the Australian dollar) on September, 21st 2001, and this value will remain the higher historical point of the cross until the Fall of 2008.

After a small decrease of the EUR/AUD cross from December 2002 (EUR/AUD = 1.8556) to April 2004 ‘EUR/AUD = 1.5781) the cross will always be between 1.55 and 1.70 until July 2008 (and we even can say that the beginning of this fluctuation is inside a quite narrow band in August 2003) : during this five-year period, fluctuations of the EUR/AUD exchange rate are really different from the Aussie (AUD/USD) ones.

On the other hand, from July 2008 (EUR/AUD = 1.6330) and following the collapse of the raw material exchange rates, the Australian dollar will depreciate against the Euro (as against the USD) in up to now unseen proportions, and the EUR/AUD cross will reach the higher point of the EUR/AUD = 2.0735 in December 2008.

The speed of the appreciation of the Australian dollar that began against the Euro from January 2009 (whereas we must wait March 2009 against the USD) is also unseen regarding the 10 previous years, and the EUR/AUD cross has in October value a value equal to 1.6214 (that represents a 25% re-appreciation of the AUD in 9 months).