The AUD to EUR exchange rate shows a bearish trend.
Key drivers include:
- Interest rate expectations indicate that the Reserve Bank of Australia (RBA) may raise rates in early 2026, potentially strengthening the AUD against the EUR.
- Economic data forecasts suggest the eurozone's GDP will grow by 1.6% in 2026, supporting a stronger EUR outlook.
- Recent geopolitical tensions and elevated oil prices—trading near 30-day highs—create complexity for both currencies, particularly affecting import costs in the Eurozone.
In the near term, the AUD to EUR is expected to fluctuate within a stable range, reflecting its recent performance above the 3-month average but subject to macroeconomic indicators.
Potential upside risks for the AUD include quicker-than-expected rate hikes by the RBA. Conversely, a resurgence in geopolitical tensions or a downturn in Eurozone economic data may weaken the AUD against the EUR, pushing the rate lower.