The EUR/AUD currency pair denotes the value of the Euro in terms of the Australian dollar and pits two of the leading currencies traded in the forex market against each other. The EUR, along with the US dollar, is considered a stable, reserve currency. On the other hand, the AUD is a riskier currency whose value is closely correlated with the prices of commodities such as iron ore, coal, gold and even crude oil.This currency pair sees ample price action when the market sentiment changes - a risk-on sentiment can turn this pair bearish while a risk-off sentiment drives sellers away from the AUD and into safer currencies instead, turning EUR/AUD bullish. Being a volatile currency pair, it offers interesting opportunities to earn profits if traded carefully.The Euro and the Australian dollar are heavily influenced by the release of key economic data from Europe and Australia respectively, in addition to monetary policy and interest rate decisions by the European Central Bank (ECB) and the Reserve Bank of Australia (RBA). Some important economic data that can drive price action in this forex pair include GDP, employment, inflation, business confidence, consumer sentiment and trade balance.