This article will help Forex traders who wish to trade the Australian Dollar (AUDUSD) against the US Dollar (USD). This can be quite a tricky proposition. If you have limited knowledge of this market, or are completely new to currency trading, you may find yourself at a loss for how to proceed. There are many currency pairs which are traded on the FOREX. These include: GBPUSD (also known as the British pound sterling exchange rate), USDCAD (the US dollar index), AUDUSD (an Australian dollar equivalent), NZDUSD (a New Zealand dollar equivalent), and EURUSD (a Euro equivalent).
Many successful traders consider the GERDUSD (the Swiss franc’s currency pair) as one of their best trades to make when they are looking to trade in foreign currency. The main reason for this is the relatively low volatility of the pair. This is not surprising since Switzerland is not an important economic power. As such, the volatility of this pair is low, therefore making it more reliable as a swing trade. When you are looking to place a trade, you will need to be aware of the low volatility of the pair and exploit it to your advantage.
AUDUSD and NZDUSD are both derived from the Euro, the dollar with the “GERD” tag. Because of its relative weakness compared to other currencies, the AUDUSD is slightly more attractive. In terms of price against the US dollar, the pair has significantly more volatility than most other major currency pairs. If you are thinking about using this pair for day trading, you may want to think again. The next section will go into detail about what you should look for when evaluating this particular currency pair.
As was mentioned previously, the volatility of the AUDUSD is comparatively low compared to the US dollar. However, this does not mean that there are no obvious trends within the pair. It would still be wise to analyze the data available and determine if there are any significant price trends. You can do this by taking a look at the over the counter data for both the EURUSD and the NZDUSD. You will notice that the price of the Euro against the US dollar varies around the average. The same is true when comparing the AUDUSD to the euro.
If you have already determined that the Euro and the US dollar move in different directions, it would then be time for you to evaluate the strength of these trends. For this reason, the best strategy for evaluating the relationship between these two currency pairs is to analyze the historical performance of the gurus and gbpusd. You can look up the online service of the AMEX for the respective currency pairs eurusd and gbpusd. There you will find the past performance of both the currencies that can help you determine how the gurus compares with the gbpusd.
Most investors tend to stick with the EURUSD or the GBPUSD because they are more familiar with these currencies. This does not mean that they are experts on the evaluation of the relationship between the two other currencies. For this reason, you should also take your time to study the history of the Australian dollar along with other major currencies. This way you can learn how to interpret and analyze the quotes better.
One important point you need to note about the AUDUSD and the USDCAD is that they are very similar to each other in terms of nature. Both the pairs use the Commodity Currency Board to determine the value of their respective assets. When looking at these two commodity currency pairs, you need to know that the Commodity Currency Board also decides on the values of the currencies in the other four corners of the world including the Australian dollar and the Canadian dollar. If the Commodity Currency Board determined that the Canadian dollar was undervalued against the Australian dollar, then traders tend to think that the AUDUSD might also be undervalued against the US dollar. In this case, they place their trades opposite the USDCAD which increases the value of the AUDUSD. On the other hand, when the USDCAD believes that the Australian dollar is overvalued, traders usually try to bear down on the CADUSD.
One important aspect that traders need to study is the relationship between the Australian dollar and the Euro after the purchase of the two currencies. The EURUSD and the USDCAD always go against the AUSUSD. If you are a new trader who wants to try trading commodities and if you are a fan of the euro and the Australian dollar, then you should always go for the EURUSD or the USDCAD.