AUDUSD is a currency pair traded between Australia and the US. Its volatility is higher than other currency pairs. It is also closely related to the economic data and trade-relations between the two countries.
Trade-relations between Australia and the US
Throughout the last fifteen years, trade-relations between the United States and Australia have improved significantly in goods and services, particularly in high-tech goods and services. Both countries share cultural affinities and democratic values. They have also formed a security alliance.
The United States is Australia’s largest foreign investor. Its investment in Australia is almost triple the value of its investment in China.
Australia’s exports to the United States are currently 96.1 percent tariff-free. This represents the largest reduction of industrial tariffs in the U.S. Since the free trade agreement was signed, Australia’s exports of manufactured goods have grown 90 percent.
The United States is Australia’s third largest export destination. In 2020, United States goods imports from Australia were up 68 percent from 2010. Imports of goods from Australia totaled $23.4 billion. The top import categories included meat, optical and medical instruments, and precious metals.
The United States is the largest supplier of entertainment services to Australia. In 2020, the US exported $15.4 billion in services to Australia. Services exports to Australia have grown nearly 100 percent in the past 15 years. Among the leading services categories include telecommunications, computer and information services, and financial services.
Economic data on the US
Various US government agencies publish reports on economic data. These are used to measure the health of the economy as a whole. The information is typically released on a monthly basis by various government departments.
The United States is the world’s largest economy, and is home to a diverse manufacturing and service sector. It has also been the home of a large productive workforce. It has access to a wealth of natural resources and sophisticated physical infrastructure.
The United States’ economy has grown steadily since the end of World War II. The country has experienced low unemployment and low inflation, and has achieved significant advances in technology. However, it has also faced several challenges in recent years. These include wage stagnation, rising income inequality, and a large government budget deficit.
Economic data on the US is available at the Bureau of Economic Analysis. The bureau reports on gross domestic product, international transactions accounts, estimates of foreign direct investment, and estimates of U.S. direct investment abroad. The agency also provides a glossary and E-mail updates. The bureau’s website also includes a business section, including links to business statistics.
Volatility of the AUD/USD
During the course of a trading day, the AUD/USD pair has a fair amount of volatility. Although it has a fairly even pattern of movement throughout the day, the most activity takes place during the late morning to mid afternoon trading session.
Although the Australian dollar is a floating currency, it still has to be actively managed to avoid volatility. For example, the Australian dollar is closely related to gold, but a decrease in gold prices has had a big impact on the currency’s value since 2011.
The AUD/USD is one of the most volatile currency pairs, and it has seen its fair share of ups and downs. The AUD/USD exchange rate has fluctuated between 0.8300 and 0.6500 since the beginning of 2015, but it is currently trading at around 0.7260, a little more than a year away from the all time low of 0.4855 on March 1st, 2001.
Day trading strategy
AUD/USD is one of the most widely traded currencies in the forex market. It is popular among newbies and experienced traders. It is also influenced by interest rates and the policies of the Central Bank.
When trading AUDUSD, it is important to understand the currency pair’s influencing factors. It is also important to have a clear trading strategy. A good strategy involves being patient and taking profits at key support and resistance levels.
AUDUSD usually trades in channels. If the price breaks out of a channel, it is a good idea to enter at the breakout point. Traders should target horizontal support zones from previous key lows.
AUDUSD is often influenced by news and economic reports. When the Reserve Bank of Australia (RBA) makes a dovish-biased statement, the price of AUD/USD can fall. On the other hand, a hawkish statement may lead to a rise in AUD/USD.
When trading AUDUSD, it’s important to remember that the currency is usually linked to commodity prices. It is also very sensitive to the economic data releases from Australia.