AUD To EUR 2023 Forecast

AUD To EUR Exchange Rate Outlook For 2023: What To Expect

Do you want a sneak peek into the future to get an idea of what AUD to EUR will look like in 2023?

Foreign Xchange can take care of that for you. We have put together this guide to tell you what to expect from the two currencies in 2023.

In this blog post, we will provide an outlook for the AUD to EUR exchange rate in 2023.

Hopefully, this serves as a guide in helping you make informed financial decisions with respect to AUD to EUR.

 

Factors That Affect AUD to EUR 2023 Forecast

When predicting how two currencies will perform against each other within a timeframe, there are three key factors to consider.

They include:

  • Economic factors
  • Political factors
  • Technical analysis

Economic Factors

The economic performance of Australia and the European Union will play a crucial role in determining the AUD to EUR exchange rate in 2023.

Factors such as GDP growth, inflation, and interest rates can have a direct impact on the exchange rate.

Australia’s economy has experienced steady growth in recent years, with GDP growth averaging around 2.5% per year.

However, the country has been hit hard by the COVID-19 pandemic, leading to a contraction of the economy in 2020.

The Reserve Bank of Australia (RBA) has kept interest rates low to support the economy, and inflation has remained relatively stable.

Political Factors

The value of a currency can be affected by a multitude of factors beyond just interest rates and inflation.

Even the most experienced financial analysts can be surprised by the extent of political influence on a currency.

Understanding how politics and foreign exchange are interconnected can provide valuable insights.

Examples of political factors that can potentially affect how the Australian dollar performs against the Euro in 2023 include elections, government policies, political stability, debt, conflict and so on.

Thankfully, there should be zero federal elections in Australia until 2025, so you can expect little to no influence from that end.

Technical Analysis

Babybips described ‘technical analysis’ as “the framework in which traders study price movement”.

In other words, technical analysis is a method of evaluating the forex market that allows traders to forecast the direction of currency pair prices by analyzing past price movements and chart patterns.

According to technical traders, markets tend to move in a cyclical manner that can be observed and identified in charts.

Studying all of these to determine and predict the AUD forecast in 2023 is quite tough and time-consuming.

However, Foreign Exchange has done the heavy lifting for you by studying all of the above- political factors, economic factors and technical analysis.

We’ve come up with a perfect prediction of how the Australian dollar will perform against the Euro in 2023. Are you ready for it?

AUD to EUR Forecast for 2023

As you’d expect, there is no one specific prediction for AUD to EUR forecast 2023. This is due to those factors mentioned earlier and how they are interpreted.

At the time of writing this, you get 0.64 when you convert AUD to EUR. But will this price be maintained throughout 2023 or we are expecting some upset?

Most financial institutions in Australia have a relatively positive outlook for the Australian dollar in 2023, believing it will outperform the Euro.

However, according to S.Money, here are the three major predictions for AUD to EUR in 2023 as shared by the analysts of three banks:

  • ANZ, one of the largest banks in Australia, says there is currently a high degree of uncertainty surrounding the AUD to EUR exchange rate. As a result, the bank predicts that AUD to EUR will end 2023 at a value of 0.6100.
  • Westpac, another leading bank in Australia, predicts that the focus on central bank policy will continue to impact the AUD to EUR exchange rate in the coming years. They anticipate that the rate will rise to around 0.6700 by the end of 2023.
  • The National Australia Bank (NAB) expects the rate to decline towards 0.6200 by the end of the year.

How is the Euro Performing in the Forex Market?

Now that we have looked at the predictions for AUD to EUR in 2023, let’s examine each of the currencies in isolation.

Euro

The Euro (EUR) went through a tumultuous 2022, with investors flocking to safer assets due to concerns of a potentially severe economic downturn in Europe.

Add to that the ongoing conflict in Ukraine, increasing borrowing costs, and persistently high inflation.

The currency experienced a significant decline, dropping below parity against the US dollar (USD) in the fall of 2022, ultimately ending the year with a 5.6% loss.

However, there are indications that the Euro’s fortunes may be improving.

As of January 17, 2023, the EUR /USD exchange rate was at 1.0822, reflecting a 0.25% increase year-to-date and almost a 10% rise in the last three months.

AUD

The Australian dollar started the year 2023 quite positively which may be a sign of things to expect in the year.

AUD reached a peak against the US dollar (USD) in January 2023, due to the continued decline of the greenback.

This is partly due to expectations that the US Federal Reserve (FED) will be implementing slower interest rate increases.

As of January 20, 2023, the AUD/USD exchange rate was at around 0.696, its highest point since August 2022.

 

How to Trade AUD to EUR on Foreign Xchange

Trade AUD to EUR

To trade the AUD to EUR currency pair, you must use the services of an intermediary in the Forex market, also known as Forex Broker.

Foreign Xchange is a top Broker and currency converter in Australia, giving you a platform to trade currency pairs, including AUD to EUR.

Our platform at Foreign Xchange is user-friendly and cost-effective.

 

How to Trade AUD to EUR on Foreign Xchange

To trade AUD to EUR on Foreign Xchange, simply navigate to the “Buy Currency” page and select the currency pair, set an amount and click on buy currency to complete your order.

Foreign Xchange has a user-friendly interface, adding to the great benefit of offering the best exchange rates in Australia.

Visit Foreign Xchange now to convert Australian dollars to other currencies at exciting exchange rates.

 

Conclusion

From the predictions, it’s obvious there is no certainty with respect to AUD to EUR prediction for the year 2023.

Hence, most traders would likely take a conservative approach when dealing with the pair.

At Foreign Xchange we remain poised to serve you throughout 2023.

2024-05-22T00:39:21+00:00