How the Australian Dollar and Other Factors Affect the AUD/USD


The AUD/USD pair is currently trading at a four-month high. This is a bullish sign for the currency pair, and a continuation of this pattern could mean further bullish movement. The currency pair is heavily dependent on commodity prices and global growth. In addition, the AUD/USD pair is sensitive to volatility, and it is worth using futures contracts as a risk management strategy.

The US dollar is often influenced by the Federal Reserve, which sets the interest rates. The Fed releases interest rates eight times per year and includes a statement on its policy, which is important for all US dollar traders. Another important event is when the US Bureau of Labour Statistics releases major consumer prices and employment data, which can have a profound effect on the USD.

Another useful tool is the IG client sentiment tool. It provides valuable information about retail traders’ aggregate positions. Using this tool, you can see whether the majority of retail traders are net long or net short in the AUD/USD. If the majority of traders are net long, the currency pair may drop. Conversely, if the majority of traders are net short, the currency pair may rise.

The Australian dollar (also known as the Aussie) is a currency that has gained in popularity in recent years. The country is one of the largest exporters of commodities, and its value is closely tied to the global demand for these commodities. As a result, the AUD/USD currency pair is the fourth most traded currency pair in the world and accounts for 5.2% of all forex trades.

The AUD/USD is a cyclical commodity market, which makes it a good choice for short-term traders. The AUD base rate is affected by commodity prices, and a decline in Chinese prices can affect the AUD/USD. Knowing how commodities affect the AUD/USD can help you make informed trades and make better profits. You can find some very attractive trends in AUD/USD by studying the statistics and the underlying trends.

Other factors that influence AUD/USD include the United States-Australia trade relationship. Both countries have a very close relationship and are considered reliable trading partners. Their governments have similar economic policies, and the Australian currency has a positive correlation with the U.S. dollar. Additionally, the AUD/USD currency pair is affected by the interest rate differential between the two countries.

The Australian dollar (AUD/USD) has become a popular currency pair in recent years. This is due in part to the economic growth in Australia after the 2000s. Its high-interest rate and stable trading relationship with China have contributed to its rise in popularity. In addition, commodity exports are another reason why AUD/USD is popular among traders.

Commodity prices are an important part of the Australian economy. It is the largest coal and iron ore exporter in the world. When commodity prices increase, the Australian dollar usually strengthens. Conversely, when prices fall, the currency weakens. During the 2015 commodities slump, the AUD/USD fell by 15% against the U.S. dollar and almost reached parity with the New Zealand dollar.

About the author


View all posts