How Volatility Affects the AUDUSD


The AUD/USD currency pair has significant volatility. Its trading hours tend to be busiest between 19:00 and 04:00 GMT. Trading is also more active during late US trading hours, which cover the mid-point of the Asia-Pacific session. Key macroeconomic data and central bank policy statements may impact market sentiment. Traders can capitalize on these news updates if they can anticipate the trend. There are also a number of important events that can affect AUD/USD’s trading price.

The AUDUSD is testing its weekly support near 0.7000 price area. After retracement from 0.72700, price started its downtrend. If the support breaks, price may continue down further. For this reason, traders should wait until the European market opens and wait for a possible breakdown of the structure. This pattern can be very profitable if interpreted correctly. However, it can also be risky if it doesn’t follow the trend.

Moreover, the AUD/USD’s movements are heavily influenced by the Reserve Bank of Australia’s monetary policy. This central bank’s dual mandate means maintaining structural unemployment and low inflation. It intervenes in the markets to maintain price stability and prop up the economy. Therefore, the Australian dollar is more strongly correlated with the S&P500. This makes it a safer bet to invest in AUDUSD. This strategy has been around for over 20 years, and many traders have been very successful with it.

The AUDUSD’s volatility is most active during the first half of the day, when the US and Japan open for trading. The second half of the day is more active, with most trading action taking place from 1200 to 1700 GMT. Both currencies experience heightened volatility between midnight and 2100 GMT. However, AUDUSD is less volatile during the early morning hours of 0700 to 1000 GMT, while the first half of the day is relatively quiet.

The Australian dollar was introduced as a decimal currency in 1966. Initially, the Australian dollar was pegged to the UK sterling pound. After the Asian financial crisis, the reserve bank of Australia deregulated the financial sector, leading to a substantial price movement in the global forex market. In 1983, the AUD/USD pair began to gain momentum. Australia’s exports in gold, copper, and iron total around a billion Australian dollars. Australia’s trade with China and other countries saw consistent growth.

Historically, Australia-China trade relations have played a significant role in the AUD’s rise and fall. Since Australia is not included in the US dollar index, the trade relationship between the two countries is highly dependent on commodity prices. This, in turn, affects the AUDUSD currency pair. However, it is also influenced by the US’s economy. Although US dollars are more stable, AUD/USD trade in commodities is expected to rise over the next couple of years.

Rising commodity prices can be a major factor in the AUD/USD. The demand for Australian commodities from Asia is particularly strong, and rising commodity prices may make the Australian dollar more attractive to investors. Increasing commodity prices in Asia are a positive sign for the Australian economy. Despite the risky global economy, the Australian dollar has a bright future, and looks set to continue increasing. However, there are some risks to the trend, especially if you are a beginner. If you are planning to invest in the AUD/USD, consider the following.

The AUD/USD currency pair is one of the most popular pairs in forex trading. The pair’s name is derived from the fact that one Australian dollar equals approximately 1.25 U.S. dollars. In other words, one Australian dollar is worth one US dollar. This is how AUD/USD is measured. The AUD/USD pair fluctuates a lot and is a good indicator of the future price of a currency.

The AUD/USD currency pair has been a hot commodity in recent years, and the Australian economy has grown steadily year after year. However, the country has experienced one major hurdle, which came during the 2008 global financial crisis. Despite the low-risk factors, the AUD/USD currency pair has been one of the most popular currencies to trade. In 2012, the AUD/USD pair was the third most popular currency pair among forex traders, and its continued strong relationship with China have contributed to its growth.