The AUD/USD currency pair has the potential to go up or down, depending on a variety of factors. The Australian economy is very closely linked to its trading relationships with other nations, particularly those in Asia. As a result, the strength of the Australian dollar is affected by changes in demand for Australian commodities in Asia, which are heavily dependent on the Australian economy. Other factors that could affect the AUD/USD include the interest rate differential between the U.S. and Australia, as higher Australian rates make the Australian dollar more attractive to U.S. investors.
News today is an excellent way to understand obscure trends and unusual daily movements. It can be a great day trading tool and can help you identify lucrative trends. Many people think that breakout trading strategies are effective, but these techniques are not for everyone. These strategies are only effective when used in conjunction with other trading techniques and require a high level of knowledge about underlying economic forces. They require the use of technical analysis and an understanding of relevant currency correlations. Correlation levels range from -1 to +1 and can change over time.
The US Federal Reserve is an important factor that influences the AUD-USD exchange rate. The Fed releases interest rates 8 times a year, and a statement along with the announcement gives traders a hint as to what direction the Fed is likely to take in its monetary policy. Similarly, the United States Bureau of Labour Statistics releases important consumer and employment data, which can influence the AUDUSD. An increase in GDP will favor the AUD, while a decrease in GDP will negatively impact the USD.
Another important factor to consider when trading the AUD/USD currency pair is the best time to trade. There is a range of hours for forex trading, but certain times have higher volatility and volume than others. While trading AUD/USD is available around the clock, the best time to trade the currency pair is generally between 19:00 and 04:00 GMT. In addition, the late US trading hours cover the mid-point of the Asia-Pacific session. Important economic reports can trigger a significant shift in market sentiment.
A daily close above the 100% Fibonacci level would signal the resumption of the primary uptrend and pave the way for prices to hit the psychologically imposing 0.7800 mark. As of today, implied measured moves suggest that prices could climb by up to 3.9% before retracing to 0.7860. A break above 0.7740 would neutralize the near-term buying pressure and trigger a pullback towards the December 7 high.
The Australian dollar is Australia’s fifth most popular currency. This is largely due to its geography, geology, and government policy. The country is home to a large variety of valuable commodities. Australia is a major trading partner of China. The Australian dollar has a stable economy and is pegged to the sterling pound. It is the world’s 12th largest economy and exports a large number of goods to other countries.
The Australian-US trade relationship also plays a big role in determining the AUDUSD currency pair. The two countries have a deep economic relationship and a free trade agreement has increased US investments in Australia by $1 billion since the FTA was signed in 2005. US exports to Australia have increased by more than twofold since the agreement came into force. However, most commodities are denominated in US dollars. In addition, the Australian economy is heavily dependent on commodity prices and will suffer if these commodities decline too much.
As with all forex currency pairs, it’s important to understand the AUDUSD’s history and trading hours before you get involved. During the Asian trading sessions, the AUDUSD has great volatility, which encourages traders. AUDUSD is a highly liquid currency pair, and it’s the fourth most popular pair in the forex market. There are a number of advantages to trading in this currency pair. Its trading volumes and liquidity make it a favorable place to start if you’re considering making a long-term commitment in forex.
The Australian dollar plays a vital role in international forex and commodities trading. Its AAA Debt rating highlights its economic and political stability. Before you dive into AUD/USD trading, it’s vital to know how the US dollar plays a role in global currency markets. Considering that the US dollar accounts for 25% of global nominal GDP, it’s important to learn more about the US dollar’s role in the market. This can help you make better predictions about the direction of the currency pair.