How to Day Trade the AUD/USD Currency Pair


If you’re interested in trading the AUD/USD currency pair, it helps to learn about the patterns that can predict price moves. These patterns usually occur during periods of high volatility, such as at 00:00 and 02:00 GMT. The biggest volume occurs at around 12:00 and 17:00 GMT. There are many strategies traders use to day trade the AUD/USD. Some prefer to use basic daily charts and historical prices, while others rely on news updates and market sentiment to anticipate future price movements.

CME listed FX futures offer a variety of flexible options for AUD/USD exposure. These options include weekly and monthly options, as well as bespoke indicators. These advanced charting tools also offer flexibility, as you can choose between trading through the central limit order book, direct with blocks, or EFRPs. You can find the most appropriate strategy for your risk profile and trading style by following these trends. AUD/USD statistics offer a wealth of information on price action in the currency pair.

During times of high interest rates, the Australian dollar can weaken or strengthen. In addition to this, the price of commodities in Australia and the AUD-USD rate are affected by global commodity prices. The recent suppression of oil prices in China has been a headwind for the AUDUSD, while the massive growth in the Chinese economy has provided the pair with a steady stream of positive news. Meanwhile, the central bank of Australia (RBA) meets eleven times a year. Minutes of these meetings are released after two weeks. Whether the members of the RBA are hawkish or dovish will dictate the direction of the AUDUSD.

Australian-US trade relations have a major impact on the AUD/USD currency pair. They are trusted trading partners with a close economic relationship. The AU/USD has seen two-fold growth in US exports since 2005, and 860.9 billion dollars of US investment have flowed into Australia. In addition to the economic relationship between the two countries, natural disasters and political announcements can cause huge fluctuations in AUD/USD.

Australia is a small country, but its geography and geology are some of its strongest attributes. Its relatively stable interest rates and strong exports of minerals and energy make it the fifth most popular currency in the world. This makes it a valuable alternative currency for traders who want to diversify their portfolios while avoiding the global financial crisis. The AUD/USD trades between 0.8300 and 0.6500 from 2015 to 2019.

While a country’s currency is influenced by several factors, the Australian dollar is closely linked to commodity prices. Because of its reliance on natural resources, the Aussie Dollar has historically been dependent on the trading of commodities. In addition to commodities, the AUD/USD is closely tied to China’s Yen. Moreover, Australia’s economy is dominated by the trade of minerals such as iron, gold, and copper. Its trade with China, along with exports of various other commodities, has boosted the AUD/USD currency pair.

The AUD USD pair has become a popular trading currency for traders. The value of AUD/USD is determined by the amount of US dollars that one Australian dollar can be purchased for a specified number of U.S. dollars. This pair is most widely traded on forex exchanges and other financial institutions. If you are interested in trading in the AUD/USD currency pair, you should know the historical values of the currency and the fundamentals that impact it.

The Australian dollar tracks the movement of other currencies and equity markets around the world. When global equity markets gain in value, Australian dollar prices increase. Conversely, if global equity markets decline, the Australian dollar depreciates. This is the reason why the AUDUSD exchange rate often tracks global equity markets. If the AUDUSD is rising, it indicates positive economic growth, which is good for investors. As a result, the Australian dollar appreciation is supported by this increased investment.

Currency correlations are important for day trading the AUD/USD pair. Despite its reputation as a “risky” currency, AUDUSD has historically shown low volatility. During the Asian trading session, however, the currency pair springs to life. A negative correlation between USD/USD and NZDUSD and a positive correlation between USD/CAD and gold, which means the currency is closely related to those currencies. This positive correlation can reflect the success of one pair and negatively affect another.