The Australian Dollar (AUD) is a major player in the global capital markets. Its resource-driven economy is highly dependent on commodity prices and global growth. Trading in AUD/USD requires accurate risk management. For that reason, traders can use CME listed FX futures, which are highly customizable and offer daily, weekly, and monthly options. Traders can also choose to trade in the central limit order book. Alternatively, they can use the CME Group Volatility Index (VIX), which measures the 30-day implied volatility.
The best times to trade the AUD/USD currency pair include the hours from 00:00 to 02:00 GMT, the 06:00 to 08:00 GMT, and the midpoint of the Asia-Pacific session. Traders may also choose to make their trades at key events, such as news releases. Breaking news can cause a rapid shift in market sentiment, so traders should be able to anticipate and exploit the shifts.
Interest rates are a key factor in determining the direction of the Aussie-US dollar pair. The Reserve Bank of Australia (RBA) reviews interest rates on a monthly basis, while the US Federal Reserve reviews interest rates eight times a year. Any increase by the Federal Reserve could strengthen the US dollar and weaken the AUD/USD.
The Australian Dollar (AUD) is one of the most traded currencies. It is the fifth most traded currency in the world. The Australian dollar is a strong currency because it is backed by Australia’s large export of valuable commodities. In addition, it has a stable economy with stable interest rates. With its unique characteristics, it’s easy to see why Australia’s currency is a popular choice for investors. Its popularity stems from its unique geography and government policy.
Rising commodity prices have a strong impact on the Australian dollar. Because the Australian economy is heavily dependent on commodities, a sharp increase in the price of these commodities could increase the value of the Australian dollar. If Australia continues to grow, the Australian dollar should remain strong. Further, rising commodity prices in Asia could buoy the currency, which is a sign of a healthy economy.
The Australian dollar and the US dollar are two of the most popular currency pairs. AUD/USD is an important part of international trade, and can be traded for interesting trading opportunities. Traders can purchase CFDs based on the AUDUSD market. They can also buy or sell the currency pair. This means that you can profit by predicting changes in the value of the Australian dollar.
Unlike many other currency pairs, AUD USD exhibits high volatility and stays volatile throughout the trading session. While volatility is low during the Asian trading session, AUD USD is very volatile during other trading sessions. It is closely correlated with other currency pairs, including gold, the NZDUSD, and USDCAD. The AUDUSD also exhibits positive and negative correlations. Positive correlation means the currency pair will move in the same direction, while negative correlation means the opposite.
The dollar lost ground in early European trading Monday as the U.K. brought forward its budget. The announcement of tax and spending plans will reassure investors. Meanwhile, the Italian consumer price index is expected to rise by 8.9% year-on-year in September. This data could also have a direct impact on the AUDUSD. Further, the AUD/JPY exchange rate will be subject to changes. A rise in the euro would likely impact the Australian currency as well.