Although the EUR is certainly a major currency, the EUR/AUD pair is not considered a major. While the geographical distance between Australia and members of the Eurozone is certainly part of the equation, the fact that many European banks have set up shop in Australia has certainly contributed to increased EUR/AUD trading.
The common currency of the 21-member Eurozone, the Euro was introduced in 1999, and as such, it is indeed one of the youngest currencies of the Forex scene. The second most traded currency after the greenback, and the second most popular reserve currency, the EUR is indeed a major presence on the said scene. The entity controlling the EUR is the ECB (European Central Bank) and it exerts its control through the manipulation of interest rates. Though recent months have seen the EUR hit new highs against a basket of major currencies, for some reason it never seems more than a step or two away from a spectacular drop.
Further expansion of the Eurozone seems unlikely in the foreseeable future.
The Australian Dollar is a commodity-based currency introduced in 1966, replacing the Australian Pound. Its decimal nature its early appeal, the AUD has always remained valued at a little bit less than the USD. As a commodity currency, the AUD is exposed to commodity price-fluctuations, but because the country does most of its trading with Asian partners such as Japan, India and China, the AUD is obviously also exposed to the performances of these economies. This makes it an attractive vehicle for diversification, as far as forex trading is concerned.
With the EUR/AUD, the differential between the interest rates pushed by the ECB and the RBA is always a major factor. Obviously, individual ups and down within the two economies also impact the evolution of the pair.
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