The Australian dollar continues to lose value against Europe’s single currency, as Covid-19 continues to take centre stage in the currency markets. With the AUD status as a commodity currency it is always at risk to big sell-offs by investors as they move to more safe haven currencies like the euro during times of uncertainty. In the past month the Aussie dollar has lost over 10% value against the Euro, as the spread of the corona virus forces the world into total lock down, with growth expected to contract by up to 10%, pushing the world into a recession and countries like Australia the most valuable as they heavily rely on trade between them and countries like China who have been hit hardest the longest by Covid-19.
Could Record Lows Between AUD/EUR Rates be Tested?
With the virus expected to keep the world on lock-down for potentially most of 2020, it is hard to see where the losses in the Australian dollar will end. Currently AUDEUR is priced at 0.5318, this is the lowest level seen for the dollar against the euro since May 2009, in the aftermath to the last bank crisis that shocked the world, and very close to an all time low of 0.46. If the dollar can stay above this low for the foreseeable future then it has a chance of consolidating its value and potentially making a recovery higher again. However, if the situation continues to worsen it could cause a bigger threat for the dollar which would see the record low tested and if broken there is no knowing how much lower the Australian dollar could fall to against the euro. We are currently in a time where everything is a new experience and a bad one for the world including the financial markets, so potential broken record highs and lows for currency pairs can rightfully be expected, as we come to terms to what is happening and adjust almost by the hour to the latest updates.
If you are planning on moving euros into Australian dollars then you couldn’t of planned for a better opportunity than now to do so, if you are moving dollars into euros, things have suddenly got more costly for you, by 10% in four weeks, but the world in uncertain territory it is plausible to believe things could get much worse before they get better.
If you would like to learn more on factors influencing AUDEUR exchange rates for an upcoming currency transfer, feel free to contact me using the form below.