How to Trade AUDUSD
The Australian dollar is one of the top performing currencies in the world. In recent months, it has gained more than 30% against the US dollar. It has strong liquidity and volatility, but it is not without its share of competition. To be successful, traders need to be well-versed in the market‘s monetary policy, interest rates, and news. Moreover, they need to make use of a variety of tools, including real-time charts and news that can indicate bullish and bearish patterns. Moreover, they should choose the right broker to cater to their needs.
When it comes to the currency pair AUDUSD, it is important to know the best time to trade. Trading is generally more volatile between midnight and 0200 GMT, while EURJPY experiences increased volatility at several points during the day. It is also active during the time between 0700 and 1000 GMT. Traders can also trade between 1200 and 1700 GMT. In addition, it is possible to trade during the times when economic reports are released, which can lead to significant shifts in price.
The Australian dollar has been gaining popularity in recent years, particularly since Australia is one of the world’s largest commodity exporters. In turn, the AUDUSD is closely linked to the price of gold, which is often viewed as a safe haven against inflation. The Aussie is also the fourth most popular currency pair in the world, accounting for 5.2% of all forex trades.
The AUD/USD is affected by a number of factors, including interest rates and geographical factors. The currency pair has negative correlations with USD/CAD, USD/CHF, and USD/JPY. However, it does have a positive correlation with the Canadian dollar, due to the fact that they are both resource-dependent.
AUDUSD is also impacted by the economic performance of Australia. Its trade relationship with other Asian countries is critical to the strength of the Australian dollar. Furthermore, the interest rate differential with the U.S. affects the value of the Australian dollar. The higher Australian interest rates, the higher the value of the currency. Interest rates in the United States could also have an effect on AUD/USD.
Historically, the Australian currency has been propped up by its close trading relationship with China. Today, this trade relationship continues to play a vital role in determining the rise and fall of AUD. Moreover, the AUDUSD is currently the fifth most traded currency pair despite not being included in the US dollar index. In addition, the economy of Australia is heavily dependent on the prices of commodities, which are valued in US dollars.
Australia is a large exporter of commodities, and the global price of oil and gold affects the AUD-USD exchange rate. A rise in oil prices or a fall in gold prices will weaken the Australian dollar. Another important factor that can impact the AUD-USD is the RBA’s monetary policy. The RBA’s board meets eleven times a year, and its minutes are published two weeks after the meetings. If most members are hawkish, the AUD will strengthen while a drop will pressure the AUDUSD to fall.
One of the most popular currency pairs in the world, the AUDUSD often increases and falls with the price of gold. As a result, the AUDUSD can be an excellent currency pair to keep a close eye on. By keeping a close eye on AUDUSD, you’ll be able to capitalize on interesting trading opportunities. When gold prices increase, the AUDUSD will increase in value as well. It is also important to remember that gold is a global commodity, and the Australian dollar serves a relatively small economy.
The Australian dollar fluctuates according to the price of various commodities and other key economic indicators. In July, the Australian dollar reached a record high against the US dollar. The rise was caused by higher than expected consumer price inflation and a Reserve Bank of Australia meeting. However, the monetary policymakers held off on raising interest rates and left the cash rate at 4.75 per cent.
While the AUDUSD is a cyclical commodity, it is also a very liquid market. Interest rate differences between different countries and currencies make it possible for short-term traders to take advantage of these differences and profit. Moreover, commodities can affect the AUD base rate, and a slowdown in the Chinese economy could push down the price of key commodities.