How to Trade the AUD/USD


The Australian dollar is tied to trade relations with Asia. As such, the Australian dollar’s strength is affected by changes in Asian demand for Australian commodities. Similarly, the interest rate differential can affect the AUD/USD. A higher interest rate in Australia makes the Australian currency more appealing to investors, while a higher U.S. interest rate could reduce its attractiveness. If this is the case, you might want to consider selling the AUD/USD.

Traders will usually prefer to ride a trend, rather than trade in tight range-bound conditions. For this, they may use tools such as Simple Moving Average (SMA) lines and Bollinger Bands. The AUD/USD currency pair is usually busier between 19:00 GMT and 04:00 GMT, covering the Asia-Pacific session’s mid-point. However, news releases and other important economic reports may also trigger significant shifts in the price of the pair.

As Australia’s export market consists of commodities, the AUD/USD has a strong connection with China. Therefore, a booming Chinese economy will increase the value of the Australian currency. You can trade the AUD/USD using an online trading platform like eToro. In addition to Forex trading, you can also trade CFDs and cryptoassets on eToro. Just make sure to read the trading terms and conditions.

The Reserve Bank of Australia (RBA) sets the short-term interest rate and issues monetary policy guidance every two weeks. Statements by RBA members can either strengthen or weaken the AUD/USD. The RBA slashed policy rates to an all-time low of 0.25% during the Covid-19 pandemic. Check out the RBA’s policy announcement schedule on DailyFX. While it is not a perfect indicator for the AUD/USD, it can help you make money with the AUDUSD.

As Australia is a major exporter of commodities, fluctuations in the prices of global commodities will affect the AUD/USD. In the past, Australia’s economy was negatively affected by the suppression of global commodity prices, which have impacted the AUD/USD rate. Today, however, the AUDUSD is influenced by other factors as well. Several factors such as oil prices and gold prices are important to Australia. The price of US crude oil and gold is closely monitored by the Australian government’s national statistical agency, the ABS. ABS data releases are a significant trigger for major price fluctuations in the AUD/USD currency pair.

The Australian dollar is the fifth most traded currency in the world. The Reserve Bank of Australia actively applies the Australian dollar in trading operations and currency exchange. The AUDUSD has historically been volatile and fluctuating in relation to other currencies. The Federal Reserve System and the Reserve Bank of Australia are both responsible for its stability. This means that it is important to understand the relationship between the US dollar and the Australian dollar. The AUDUSD is important for investors as it is an excellent investment.

The AUD/USD currency pair is a highly cyclical market, and the underlying factors will have a direct impact on future rates. It is possible to trade this currency pair by looking at the past and current conditions of the economy in Australia. For example, a decline in Chinese economy will push down key commodity prices, which will affect the AUD’s base rate. A downward trend in commodities will affect the AUD and a high interest rate will lower the USD’s value.

The AUDUSD currency pair is part of a larger group of forex trading currencies. Its high volumes and liquidity are also an advantage. Traders can take advantage of low spreads and high liquidity in the AUD/USD currency pair, thereby making it an excellent choice for forex trading. The volatility in this currency pair during Asian trading sessions is encouraging for traders. It is also one of the most widely traded currency pairs in the forex market.

The Australian dollar was once tied to the British pound, but this relationship has ended. In 1946, the AUDUSD was pegged to the US dollar for a short time, but in 1947, the currency returned to its old relationship with the British pound. Since then, the Australian dollar has become a decimal currency. This means that it is a relatively safe bet for investors. But it’s important to understand the history of the currency pair before buying.