AUDUSD trading involves trading the Australian dollar. While AUDUSD has low volatility during the European and American trading sessions, it is very volatile during the Asian trading session. In addition, AUDUSD shows a positive correlation with gold, NZDUSD, and USDCAD. Positive correlations mean price movement mirrors each other, while negative correlations mean the opposite.

On a weekly chart, the Aussie is trading inside of a descending channel. It has broken below the resistance level and is now making lower highs and lower lows. It also remains below the 50-day moving average. It is expected to make further declines, testing the 0.692 support level and 0.676 in extension. However, a break above the 0.7155 pivot point would be a bullish signal and a trend reversal to the upside.

The Federal Reserve is one of the main factors influencing the US dollar. The Fed releases interest rates eight times a year and accompanies it with a rate statement that provides clues about the future direction of monetary policy. The US Bureau of Labor Statistics also releases major economic data, including consumer prices. This data provides an indicator of how fast a country’s economy is growing. A high GDP reading is a positive sign for the AUD while a low one can be a negative factor.

Interest rates are another important factor affecting the AUDUSD. The Reserve Bank of Australia reviews its interest rates every month and the US Federal Reserve reviews rates eight times per year. If the Federal Reserve increases its interest rates, the AUD/USD will likely strengthen and vice versa. A hawkish statement from the RBA will lead to a stronger Australian dollar.

Australia’s economy is a major exporter of commodities. This means that any change in global commodity prices will have an impact on the Australian dollar and the AUD-USD rate. The recent suppression in oil and gold prices has had an adverse impact on the AUDUSD. In addition, the ABS publishes important economic and social data, which can cause major price changes in the AUDUSD. This is why it is important to follow ABS data releases monthly.

Although Australia is not a large country, the AUDUSD is the fifth-most traded currency in the world. Its issuer is the Reserve Bank of Australia (RBA), which actively applies the currency in trading operations and currency exchange. Despite its size, Australia has a stable economy and stable interest rates.

Australian-US trade relations are another important factor that affects the AUD/USD currency pair. These two countries have a strong economic relationship and are trusted trading partners. The Australia-US Free Trade Agreement was ratified in 2005, which has resulted in a boost in US exports to Australia.

AUDUSD is the fifth-most traded currency pair in the world and is traded in many forex brokers. It is also a popular choice for currency traders due to its low spreads and low volatility. Spreads on the AUD/USD pair are usually just one to three pips wide. This is a very tight range for trading, and traders are encouraged by the tight ranges.

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