2020 AUD to Euro Forecasts
Anti-Eurozone talk escalated in 2019, driving uncertainty and volatility in the Euro relative to the Australian dollar. Will this trend continue in 2020? Let's see what the Big 4 banks predict in their long term AUD Euro (EUR) forecasts.
In 2020, most of the banks predict the AUDEUR to trend higher in the middle of the year, before falling by December.
A falling AUDEUR trend in 2019 has been driven by a weaker Australian dollar, rather than any strength in the Euro. In fact, the Euro has been weaker lately with Brexit and slower economic growth in major Eurozone countries.
AUD to EUR Long Term Forecast Summary
- ANZ bank has the most negative outlook for the AUD EUR with a forecast of 0.5800 for the end of the year
- CBA has the AUD EUR rate declining to 0.6100 by the end of 2020
- Westpac also expects the AUD EUR rate to remain above 0.6000 by the end of Q4 2020
- NAB has the same AUD EUR rate of 0.6100 by December 2020
Where to find the best AUD to EUR exchange rates
Compare exchange rates from Australian banks and foreign exchange leaders.
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EUR to AUD Bank Forecast
Exchange rates are the relative prices between two currencies and this is why currencies are expressed in pairs. The major Australian bank forecasts are in Australian dollar terms, or the currency pair AUD/EUR. But if you're interested in bank forecasts in Euro terms or EUR/AUD you can calculate it.
To convert from EUR to AUD all you need to do is divide 1 by the rate.
For example, if the AUD to EUR exchange rate is 0.63, then 1 Australian dollar is worth €0.63 or 63 Euros. You divide 1 by 0.63 to find the EUR to AUD exchange rate of 1.5873. In this example, 1 Euro is equivalent to $1.5873 Australian dollars.
We calculate the bank forecasts for the EURAUD in the following table:
Bank EURAUD exchange rate forecast
AUD to EUR Exchange Rate Calculator
Where to find the best AUDEUR cash rate
In Australia, the best cash rates are found in major cities. We regularly check the main money changers in each CBD to find out the best exchange rates in town.
How to track down the best cash rate
You can either walk around to each money changer, try and call each one and check their rate or you can use our city and suburb guides:
What is the AUDEUR?
The AUDEUR pair tells you how many Euros are needed to purchase one Australian dollar.
EUR is the official currency for 19 of the 28 member states in the European Union (EU), also known as Eurozone or Euro area. The Euro is the second-largest most traded currency in the foreign exchange market, after the US dollar.
Does the AUDEUR exchange rate change a lot?
Like most currencies, the Australian dollar exchange rate and the EUR exchange rate can be highly volatile.
That’s why it’s popular with traders and why it’s important to consider hedging if you're transferring money overseas.
AUDEUR forecasts can also change drastically, in response to significant currency moves. Many exchange companies or money transfer services offer rate alerts online to help you get the best AUDEUR exchange rate.
Is the AUDEUR rising?
Hard to tell. The Aussie dollar is relatively less weak than the EUR, which makes the rate slightly higher, but both currencies are falling. There are many factors that influence this relationship including:
- Australian dollar currency: When the AUD rises, the EUR falls. This is because the AUDEUR is a currency cross or pair. The Australian dollar has been falling relatively more than the EUR since the beginning of the year.
- Weak EU economies: Most of the countries that are part of the European Union have had weaker economic growth in the first half of 2019. Weaker growth equates to a weaker Euro.
- Brexit: The EU's relationship with the UK is in a period of uncertainty while Brexit is being finalised. A Brexit deal is important for trade, with the Eurozone being the UK largest trading partner. Prime Minister Boris Johnson has been pushing for a 'no deal Brexit' which is negative for trade. Greater uncertainty can lead to a weaker Euro.
- US-China trade war: US President Donald Trump is threatening to increase tariffs on Chinese imports. This is a key reason why China's growth is slowing and is importing less from the Eurozone. Both the AUD and EUR falls as a result.
How do I forecast the AUD to EUR rate?
Investors forecast the movement of the Australian dollar as it relates to the Euro, by looking at key influences including:
- Currencies - Australian dollar forecasts, Euro forecasts, and US dollar forecasts
- Central banks - namely the Reserve Bank of Australia (RBA) and Governor Philip Lowe, and US Federal Reserve (the Fed or FRB) and Chairman Jerome Powell, European Central Bank (ECB), Bank of England (BOE).
- Interest rates - Investors predict how central bank announcements - like interest rate cuts or hikes - will affect interest rate spreads. Central banks can also aim to stimulate an economy in other ways.
- Local governments - Australian Government and Prime Minister Scott Morrisson, US Government and President Trump, EU's Principle Leaders Donald Tusk; Jean-Claude Juncker; David Sassoli, UK's Brexit and Prime Minister Boris Johnson
- Australian Economic Data - Economic growth indicators (GDP), Inflation (CPI Core Price Index, PPI Production Price Index), Trade balance (balance between exports and imports of total goods and services)
- EU Economic Data - GDP, trade balance and inflation
- US Economic Data - GDP, trade balance and inflation
- China (plus Hong Kong, Singapore, and rest of Asia) Economic Data - GDP, trade balance and inflation
Should I trust bank AUDEUR forecasts?
The Australian Dollar and Euro exchange rates can change a lot. So while banks have experts that spend long hours modelling future currency moves, there may be factors that aren't predicted.
Multiple factors influence currency movements that are both local and global. Plus, major bank forecasts are generated with a combination of computer modelling and human influence.
We recommend you don't make your exchange rate decisions based solely on bank forecasts, but rather, take into account your personal objectives, financial situation and needs.
Where can I find out more about AUDEUR?
General advice: The information on this site is of a general nature only. It does not take your specific needs or circumstances into consideration. You should look at your own personal situation and requirements before making any financial decisions.