The EUR/AUD currency pair, which is the value of the euro expressed in terms of the Australian dollar, provides one with an interesting perspective with respect to global markets and risk sentiment.
Because of the low rates offered in Europe (in fact, the deposit facility rate as set by the European Central Bank remains in negative territory at -0.50%), the euro has in recent times served as an alternative funding currency for risk-taking. This is because the negative carrying cost of the euro has enabled traders to borrow euros, and use those euros to make