The AUD/USD currency pair is based on the Australian dollar. As a resource-driven economy, Australia’s economic health relies heavily on the global economy and commodity prices. To minimize risk and maximize return, traders use CME listed FX futures and options. Using these instruments allows traders to control exposure to AUD/USD in a simple, transparent manner. Moreover, traders can access sophisticated live streaming charts, including 1-minute, five-minute, 15-minute, and 1-hour charts with bespoke indicators.
The AUD/USD currency pair has recently recovered from a pullback around the 38.2% retracement of its recent major move, but the bulls have been quick to bounce back and keep the door open for more bullish strategies. In addition, AUD/USD has developed a morning star formation, which builds on a doji printed on Tuesday and a big green bar printed on Wednesday. This formation typically signals a bullish continuation.
The Australian dollar is heavily influenced by events in China. Its massive growth coincides with the expansion of China’s economy. News regarding China’s economy can act as both a tailwind and a headwind for the AUD/USD. Finally, the AUD/USD exchange rate can be affected by the Central Bank of Australia’s (RBA) policy decisions. The RBA’s board of directors meets eleven times a year and releases minutes of its meetings. If the majority of members release hawkish statements, the Australian dollar will likely rise. Conversely, if the majority of members make dovish statements, the AUD/USD will probably fall.
As a consequence of its strong economy, Australia’s currency has gained significant popularity as a trade currency. While it is not a very large country, it remains the fifth most traded currency in the world. Its geography, geology, and government policies make it an ideal country for trading, and its interest rates are low.
The Australian Dollar and the US dollar are two major trading partners. Both countries have a close economic relationship, which influences the value of the AUD/USD currency pair. The US and Australia have a Free Trade Agreement which has led to significant increases in trade between the two countries. Since 2005, US exports to Australia have increased by 91%.
Australia’s economy has seen steady growth since 2001. However, it experienced a bump during the global financial crisis. With minimal RBA intervention, the AUD/USD currency pair has become an attractive choice for FX traders. However, it is important to remember that trading with the AUD/USD currency pair requires a certain amount of risk. Strong reversals in trends can result in substantial financial losses.
Another characteristic of the AUDUSD is its long-lasting volatility. Few pairs have such volatility during all trading sessions. Although the Asian trading session is characterized by relatively low volatility, the currency pair peaks during this period. Additionally, the AUD USD currency pair is positively correlated with gold, NZDUSD, and USDCAD. Positive correlation means that the currency pair will move together, while negative correlation means that it will move in opposite directions.
Australia is a major exporter of commodities. This means that changes in global commodity prices will affect the AUDUSD and the rate of the Australian dollar. Since 2011, the AUDUSD has been affected by the suppression of oil and gold prices. Likewise, the ABS, the country’s national statistical agency, releases important economic and social data which can affect the AUDUSD. This data is released monthly, and the release of this data can have significant effects on the AUDUSD.