How To Identify the Best Time to Buy Or Sell AUDUSD Forex
How To Identify the Best Time to Buy Or Sell AUDUSD Forex
The Australian Dollar (USD) and New Zealand Dollar (NZD) are highly correlated, especially when compared to the Forex Spot market. In fact, they move together almost as closely as the Swiss Franc (CHF), the Euro or the Japanese Yen. This close relationship is largely due to the major economic factors that drive each of these currencies. For example, Australian and New Zealand Dollar investors have long appreciated the strength of the Australian dollar (AUD) against the US Dollar (USD), which has been supported by the strength of the country’s financial market and its strong economic growth. At the same time, investors in New Zealand have always looked at the prospects of recovering the New Zealand Dollar (NZD), which has been badly affected by recent negative economic indicators such as high interest rates, unemployment and deflation.
Recent positive developments in New Zealand’s government and its policy frameworks have helped it regain investor confidence, making it a more attractive place to invest. However, its historic strength that made it an attractive trading partner for global commodities traders is losing its steam. GBPUSD has broken 1.1800, while urn USD and USDCAD are overbought with caution, looking suspect for further appreciation. The recent weakness in the US Dollar (USD) against the Canadian Dollar (CAD), Australian Dollar (AUD) and New Zealand Dollar (NZD) is mainly because of the weak domestic economies and rising oil and gas prices. On the other hand, high levels of international energy and commodity commodities also serve as a supportive base for AUDUSD and NZDUSD.
One of the factors responsible for increasing volatility of the Australian Dollar (AUD) against the US Dollar (USD), Australian Dollar (AD) and New Zealand Dollar (NZD) is the increasing tension in Middle East. The recent events in Iraq and Iran have worsened the position of these currencies. In addition, the financial conditions in these economies are also playing a significant role in determining the future direction of the AUDUSD and NZDUSD. Oil and gas prices, trade tariffs and other factors are contributing to drag on the Australian Dollar (AUD), NZD and the CAD. On the contrary, the high level of global commodity currencies (CAD, USD, GBP, EUR, CHF) have made it an unassailable foundation for the AUDUSD.
According to analysts, the best time to day trade forex is during the two weeks prior to the first New Zealand winter. During this period, the New Zealand economy should begin to resume its uptrend from last year as long as oil and gas prices remain low. If you are an investor waiting for the best time to enter the Forex markets in Canada, then the aforementioned is the ideal time for you.
Canada’s two largest stock exchanges, theTSX and the Canadian Stock Market (TSX) are generally considered to be less liquid than other major currency pairs. This makes them more difficult to trade, however, the low liquidity factor is offset by the fact that Canadian dollars are usually worth more than US dollars. In addition, a large number of domestic companies exist in Canada, which can increase liquidity. Another advantage of trading in Canadian currency pairs is that there are no trading restrictions and commissions charged.
The three most prominent currency pairs that are traded on the North American Stock Exchange (NASDAQ: NASDAQ) are the CADDRW, the TorontoDAAD and the Canadian CDAD. These are considered to be the two primary swing currencies in the world. Traders have been looking for opportunities to trade these currencies since they have high volatility and offer strong price action. One reason why traders choose these majors is because they offer more profit potential in less time. Traders who purchase Canadian dollars on the BSE and sell them on the NASDAQ need not wait for more than a day or two for the price action to change, as it does with the majors.
If you are new to trading currencies, the best option is to start trading with one of the two majors that you are most comfortable with and then take a swing at the other two currencies. If you prefer the stability of the BSE and wish to work with its full range of financial products, the CADDRW is the ideal choice for you. The TorontoDAAD and the Canadian CDAD are less liquid but offer greater potential for profit. Traders who do their trading on the BSE need to be aware of the different conversion rates between the base currency and the foreign currency pair they are trading. The gurus are often a good choice when trading the majors, especially when the pair being traded is relatively easy to convert into the major currency pairs.
When you have determined the pair that you will be trading, it is time to find out when the best time to enter the market will be. Many forex pairs have daily ranges of prices that may be favorable to enter at certain times. A common trade point for many traders is the weekly end of the week, since this is when the trading markets make a return to a new higher price level. You can use any of the best time frames to find out when the best time is to enter the market for any particular pair.