The Euro to Australian Dollar (EUR/AUD) exchange rate is currently range-bound.
Key drivers include the interest rate differential; the European Central Bank (ECB) remains cautious on rate hikes, while the Reserve Bank of Australia (RBA) is expected to raise rates soon, supporting the AUD. Economic sentiment remains mixed; the euro may find strength from a potential rise in Germany’s consumer confidence, while the outlook for the AUD is also bolstered by a positive growth forecast in Australia.
Over the next 1–3 months, the EUR/AUD is expected to trade within a stable range.
An upside risk could stem from improved economic data out of the Eurozone, while a downside risk may arise from any unexpected geopolitical tensions that could weigh on market sentiment.
Recent EUR/AUD trading has shown stability, with prices hovering near recent highs. Additionally, oil price fluctuations could also affect the euro, given its ties to energy markets, coming from volatility in global crude prices.