The AUD/USD currency pair has a high volatility and it can move in large and small swings depending on a variety of factors. The Federal Reserve is the central bank in the United States, and its mission is to maintain price stability and structural unemployment. The Federal Reserve can intervene in the market to maintain price stability or prop up the economy. Most of the time, movements in the pair are dictated by the Australian side. AUDUSD news releases can have a huge impact on the AUDUSD currency pair.
The Australian dollar was introduced in 1966 and replaced the nondecimated Australian pound. The Australian dollar was pegged to the UK sterling pound. Today, Australia is the 12th largest economy in the world. It is a major exporter of minerals and precious metals. Its largest trading partner is China, with whom it maintains a huge surplus. AUD/USD data can help you make an informed decision about the currency pair.
The AUDUSD currency pair’s performance is affected by the economic relationship between the two countries. Australia receives about one-third of its exports, including goods from China. It is also a major trading partner for the US. The Australia-United States Free Trade Agreement was ratified in 2005, and since then, US exports to Australia have increased by almost double. US dollars are used as the basis for most commodities, so if the economy of one country suffers, so does the AUDUSD currency pair.
As with most currencies, timing is everything, and trading the AUD/USD currency pair during the right time can make all the difference between making a profit or losing a large chunk of it at the end of the day. While forex trading is available around the clock, there are specific times when the volatility and volume is greater. While the AUD/USD is active throughout the day, the most active trading hours are between 0700 and 1800 GMT, and from 1200 to 1700 GMT.
While the AUD/USD is closely linked to its trading relationships in Asia, there are other factors that can affect the AUD/USD. As the Australian economy relies on commodities to power its economy, rising commodity prices may make the AUD/USD more attractive. A higher interest rate differential may make the AUD/USD less appealing, but a strong Asian demand for Australian commodities could lead to a significant change in the currency pair. The Australian dollar is also influenced by a variety of factors.
The AUD/USD currency pair is a popular choice for investors who are looking for a reliable way to trade forex. This pair is made up of two major economies that are advancing at the same time: the United States and Australia. Its volatility is a significant incentive for traders, and it has a history of high volumes. With minimal spreads, AUDUSD is one of the most traded currency pairs in the forex market.
The Australian dollar plays a critical role in international commodity and forex trading. The country has a AAA Debt rating, which highlights its political and economic stability. However, aspiring AUD/USD traders should also know about the role of the US dollar, which represents 25% of global nominal GDP. While Australia is a stable country, it is still subject to the effects of major events in other countries, and it’s important to understand the impact of COVID-19 on its local economy.