How to Trade AUD/USD
The AUD/USD currency pair is at risk of breaking lower and is currently pressing a critical Fibonacci support level at 0.6855. Additionally, the 20 SMA has accelerated its decline above the current level, which is converging with Fibonacci resistance at 0.6960. Further, a number of technical indicators indicate strong selling interest.
The AUD/USD currency pair is a volatile currency, with the potential for significant losses. Traders should employ a money management system to limit their losses. The volatility of this currency pair makes it highly recommended only to trade with substantial capital. Even so, there are several strategies to profit from the currency pair. One of the most popular is to use a breakout strategy, which involves watching the resistance and support levels and entering a position ahead of a break. Then, if the price continues to move in the breakout direction, the trader can profit.
One of the best ways to trade AUD/USD is to trade in the Asian trading session. The Asian trading session is known for its low volatility, but the AUD/USD is one of the only currency pairs that remains active during this trading session. The AUD/USD also has a strong correlation with the Swiss franc, which uses the dollar as its base currency. This means that if one currency pair increases in value, another currency pair will follow suit.
Another important event that can influence AUD/USD is the US Federal Reserve meeting on Wednesday. Fed officials are widely expected to raise rates by 75 basis points. A dovish or hawkish bias in the statement could lead to a significant fall in AUD/USD. Therefore, traders should look at the latest economic data when assessing AUD/USD trading.
Trading AUD/USD is a great way to take advantage of the boom in Australia. Currency trading is very popular and the AUD/USD pair is one of the most popular in the forex market. There are many resources available to learn more about AUD/USD currency trading. A CFD is a contract for difference that lets investors buy or sell currencies and commodities. A CFD can help a trader predict how the price of a currency pair will move.
The economic factors that affect AUD/USD are often closely tied to trade relations in Asia and interest rates in the U.S. Generally, higher interest rates in Australia make the AUD/USD more attractive. Conversely, higher interest rates in the United States may change the attractiveness of the AUD/USD.
Trade relations between Australia and the US are also important factors influencing AUD/USD. Australia and the US enjoy a strong relationship with each other and are trusted trading partners. Their free trade agreement signed in 2005 has led to more than $1 billion in direct foreign investment. As a result, US exports to Australia have more than doubled in the last decade.
In addition to being the fifth most popular currency in the world, the AUDUSD is correlated to a number of global commodity prices. Because of these factors, it is important to understand how to trade with Australia and its major trading partners. The AUDUSD is positively correlated to global spot commodity prices, which affects its value.
Moreover, Australia is a major exporter of commodities. As such, changes in the price of commodities like gold and oil will affect the AUDUSD and its value. The recent suppression of gold and oil prices has had a detrimental impact on the AUDUSD in recent years. Additionally, the ABS, Australia’s national statistical agency, releases key economic and social data that can lead to big movements in the AUD USD.