The Euro cross with the Australian Dollar (EUR/AUD) currency pair is always an exciting pair to trade. More often than not this exchange rate is used when market participants are looking to trade a market tied to risk, without the US Dollar variable and without needing to be exposed to too much risk through emerging markets. In short, this is a market used to play the risk trade within the developed currency basket.
While the Eurozone economy is the largest in the world amongst the developed markets and second largest in the world behind China, the Australian economy is seen as an economy more inclined to move with the ties of risk sentiment. As far as the Australian economy goes, it is focused on commodities as reflected through its shipping of energy products and ferrous metals mining. The Australian economy is also heavily correlated to the Chinese economy which is more closed off to global investors, which often makes EURAUD an attractive play as a proxy for a play on China relative to the Eurozone. So if you’re looking to make a play on risk, if you're looking to make a play involving Europe and commodities or if you're looking to make a play on China, the EURAUD pair could be the way to go.