The EUR to AUD exchange rate currently exhibits a range-bound bias.
Key drivers affecting this outlook include:
- The European Central Bank (ECB) is maintaining a flexible interest rate policy, while the Reserve Bank of Australia (RBA) is expected to raise rates soon. This interest rate differential could support the AUD against the EUR.
- Recent GDP growth projections for the Eurozone indicate positive movement, fueled by fiscal measures in larger economies. However, ongoing geopolitical tensions may impact overall stability.
- As oil prices reach 30-day highs, affecting global sentiment, fluctuations could further influence the euro's performance.
In the near term, the expected trading range suggests stability around current levels, reflecting a tight band given the recent movements.
Potential upside risks could stem from a strengthening euro following improved economic data. Conversely, a spike in geopolitical conflict pertaining to Europe could exert downward pressure on the euro, potentially weakening its position against the AUD.