Will the EUR/AUD conversion rate change?

According to Joseph Capurso, head of international and sustainable economics at The Commonwealth Bank, it’s expected that there won’t be much change for the rest of the year for the EUR/AUD conversion rate. Instead, it’s anticipated that the two currencies will stabilise against one another at a similar rate that they are sitting at now.

Why did EUR/AUD hit a low in 2012?

EUR/AUD reached its lows in the midst of the European sovereign debt crisis in 2012, when it hit A$1.1619. Since mid-July 2012, the pair has recovered mainly due to the European Central Bank's policy of Outright Monetary Transactions (OMT), the 'whatever it takes' measure that ECB President Draghi threatened in August 2012.

Why is the AU dollar depreciating?

As ANZ’s head of FX research Mahjabeen Zaman explained to Forbes Advisor Australia, the AU dollar is a pro-cyclical currency, meaning it appreciates in good times and depreciates in bad times. Therefore, with the current economic uncertainty happening in Australia, the AUD has been depreciating in value against other currencies.

Why does Australia use AUD as a proxy for Asia?

According to Commonwealth Bank, “Some 76% of Australia’s exports are direct to Asia, and AUD is often used as a proxy for Asia.” 2 Import/export deals, trade agreements and policies regarding China, India and Japan can play an influential role on Australian dollar currency movements.