The Australian to US dollar (AUD/USD) pair is one of the most popular forex pairs. It accounts for five percent of the global fx market‘s total volume, and is known for its volatility and high volume. Both the US dollar and the Australian currency are used, and the AUD is the base currency, while the USD is the quote currency. As such, the AUD is worth the same amount of dollars at any point in time.
Day trading the AUD/USD currency pair involves understanding relevant currency correlations and gaining an understanding of the underlying economic forces. Although each currency pair moves independently, their success will affect other currency pairs. These correlations range from -1 to +1, and positive and negative correlations vary significantly over time. This information can help you to make better trading decisions and to avoid common trading mistakes. However, you should always keep in mind that it is best to invest small sums of money in a single currency.
The Australian dollar is currently carving out a bull flag continuation pattern. A daily close above the 100% Fibonacci level would signal the resumption of the primary uptrend. As of writing, an implied measured move suggests a 3.9% climb to 0.7860. Further, the AUDUSD Forecast Poll shows that there is a moderate bullish outlook for 2020. The average outlook for this currency pair is 0.7684.
As the Australian economy is relatively stable, there is a high likelihood of an ongoing trend in the currency pair. Whether a major economic event is expected to affect AUD/USD is an important factor in the currency markets. Many traders will use the news released by major financial institutions to trade in the AUD/USD. During times of high commodity prices, Australia can be a ray of hope for the rest of the world.
The AUD/USD currency pair’s movement is triggered by key economic data. When there is a significant change in economic data, it may lead to an increase in AUD/USD. If the data is favorable, it will be boosted in AUD/USD’s value. A major increase in AUD/USD in 2020 is also positive for the AUD. This means that it is a good time to buy if you are looking for a carry trade.
The Australian currency has a long-lasting volatility. Only few pairs have this kind of volatility throughout the day. While the Asian session is relatively volatile, the AUDUSD stays up during all other trading sessions. Furthermore, it has strong links with other currencies, such as gold and the USD CAD. A positive correlation means that the two currencies will move in the same direction. A negative correlation means that the currency pair will move the opposite way.
The AUD/USD has a cyclical nature, with a strong basis in commodities and a relatively low base rate. As a result, it is important to be aware of the global economic news today and identify a short-term trend. Moreover, the AUD/USD is a major currency pair in the forex markets of China. There are other countries with higher currencies than the Australian dollar. This is why they are different.
Despite its high volatility, the AUD/USD can be traded at any time. The AUDUSD is correlated to commodities such as iron and copper. The Australian dollar is linked to the New Zealand dollar, while the New Zealand dollar has a low correlation to a weaker one. Using the same criteria as the US dollar will help you determine the AUDUSD’s direction. The AUDUSD is a highly diversified currency.
The US dollar also plays an important role in the AUD/USD pair’s value. The US is the largest trading nation in the world, and is the second-largest manufacturer. Its GDP is $2.43 trillion, and is the highest among developed nations. Besides, it is the fourth-largest currency pairing in forex. It accounts for 5.2% of forex trades. You can use the AUDUSD to speculate on the price of commodities and oil.
Instaforex is an excellent choice for traders. Its low spreads and a broad range of currency pairs make it easy to use. AUD/USD is the most common currency pair in the world, and it represents 7% of the total Forex market’s turnover. If you’re looking to trade the AUD/USD, you’ll have a lot of options. It’s also the fourth most active pair, which means that it’s a good currency to invest in.