If you are looking to make a profit in the AUDUSD currency pair, you can trade it with a variety of strategies. The currency pair has strong momentum and tends to move up and down in small ranges. A bullish bias exists if AUDUSD breaks above the trendline resistance at.7220. If the AUDUSD continues to grind higher, it will likely test the next level of resistance at.7315 and the 200-day moving average at.7340. If AUDUSD breaks below recent lows at.7165, it would lose this bullish bias. Whether you trade the AUDUSD currency pair daily or weekly, you can find the best time to buy and sell based on the statistics.
The Reserve Bank of Australia (RBA) is the central bank of Australia. It sets the short-term interest rate and releases monetary policy guidance on the first Tuesday of each month. RBA policy announcements can affect the value of the AUDUSD. Monetary policy is often influenced by the Reserve Bank of Australia (RBA). If the RBA makes hawkish statements, the AUD/USD will likely strengthen. Otherwise, if it makes dovish statements, AUD/USD may decline.
The Australian-US relationship also plays an important role in AUDUSD. Historically, trade relations between the two countries have played a prominent role in the rise and fall of the AUD. The US dollar index does not factor in Australian-China trade. Australian exports of coal and iron ore to the US are highly dependent on commodity prices. However, despite the close ties between the two countries, it is important to remember that the AUD/USD currency pair does not track the US dollar index.
The Australian dollar/US dollar currency pair is traded on a daily basis. The rate of AUD/USD indicates how many US dollars it takes to buy one Australian dollar. When AUDUSD is trading at 0.7500, it equals 0.75 US dollars. The low volatility in the pair during Asian trading sessions encourages traders. As a result, AUD/USD has tight spreads, typically staying within a 1 to three pip range on most forex brokers.
As Australia is one of the world’s top commodity exporters, the value of the AUD/USD pair is highly dependent on the global economy and commodity prices. With this high level of global trade, Australia’s currency is an attractive option for those who wish to manage their risk. For the most part, the Australian dollar is the fifth most traded currency in the world. It is actively applied in currency exchange and trading operations. Its stability and high interest rates also make it attractive for investors.
Other factors that may affect the AUD/USD currency pair are the trade relations between Australia and other countries. While trade with Asia is the most significant factor, trade with the U.S. and Japan are also major influences for the AUD/USD. Another factor that can affect AUD/USD is the interest rate differential. Higher Australian rates make the Australian dollar more attractive, and higher interest rates in the U.S. may lead to a decrease in the value of the AUD/USD.
The Australian dollar is also known as the Aussie among forex traders. Like the US dollar, the AUDUSD is directly affected by changes in both countries’ monetary policies and economies. The Aussie was first floated in 1983, and closely follows the price of commodities. As such, Australia is the world’s largest exporter of commodities. As a result, it closely tracks commodity prices and the Australian Terms of Trade. The AUDUSD trade is a popular way to make a profit.
Australia is an important economic force in global commodities and forex trading. The country’s AAA Debt rating highlights its political and economic stability. Understanding the role of the US dollar, which accounts for 25% of global nominal GDP, is important for aspiring AUD/USD currency traders. In the event of a major recession, the AUDUSD could fall substantially against the US dollar. Therefore, traders should understand how the US dollar affects the AUD/USD currency pair to make accurate predictions.