Discover everything you need to know about the performance of the Australian Dollar against the Euro and the factors that affect the value of each currency.
Australian Dollar to Euro exchange rate history
As the official currency of Australia, the Australian Dollar (AUD) replaced the Australian pound in 1966. The AUD started out as a fixed currency but had all foreign exchange controls removed by the end of 1983.
Since being fully introduced across the Eurozone in 2002, the Euro (EUR) has been valued much higher against the AUD. In the period from 2002 to September 2015, the value of the AUD ranged from €0.49 to €0.86, with an average of €0.65. The AUD reached its highest points in July and August of 2012 when the Eurozone battled through a global recession. While the value of the EUR fell relative to most major currencies, the Australian economy avoided a recession, leading to a strong AUD at the time.
Euro historically strong against Australian Dollar
From 2002 to 2008, the EUR traded at a much higher value than the AUD, driven by the strong performance of the Eurozone economies. In late 2008, however, the USA’s subprime mortgage meltdown and the global recession made its way to Europe, prompting a loss of confidence from investors and significant falls in value for the EUR. From this period until 2012, the AUD continued to rise in value against the EUR until it reached its high point of €0.86.
At this point in mid-2012, the Euro’s performance was dragged down by poor growth figures, high debt and the ongoing Greek debt crisis. Towards the end of the year, however, moves were made to reduce debt levels and encourage consumer confidence, which gradually saw the Euro stabilise and return to its former health. As a result, it began to climb in value once again against the AUD.Back to top
Australian Dollar steady against a weaker Euro
During 2013, the Eurozone continued to face a range of difficulties in the form of the Greek debt crisis slower than expected growth and political uncertainty in some member countries. Despite these challenges, the EUR continued to rise in value against the AUD. Much of this was to do with a slowdown in the rate of Australia’s economic growth. As the mining and commodities boom - which had been driven by the rapid growth of China - began to cool off, so too did the Australian economy. Combined with a fall in labor markets and dropping levels of consumer confidence, the Australian economy’s pace of growth began to decline.
During 2014, the AUD remained relatively steady against the EUR, starting the year at €0.65 and ending at €0.68. For much of 2015, the two currencies traded in a similar range, with the EUR mostly stable despite the ongoing concerns surrounding Greece. In the second half of the year, however, the AUD has fallen markedly against the EUR and other major currencies, dropping from €0.71 in late May to €0.62 at the end of September. As poor growth figures continue to come out of China, the resulting impact on the AUD has seen it plummet relative to other major currencies, including reaching a six-year low against the US Dollar.
With China’s economy expected to continue to slow, many analysts expect the AUD to weaken further against the EUR and other major currencies throughout 2015 and into 2016.