The Australian dollar (AUD) fluctuates against the U.S. dollar due to economic factors. When global equity markets are rising, the AUDUSD appreciates. Conversely, when the equity markets are declining, the AUDUSD depreciates. Investors speculate on the future movement of the currency by buying and selling it.

The Australian dollar is currently in a strong downtrend. It has entered a Bearish channel, created a Bearish flag and retested the Fibonacci resistance area. Both the Ichimoku and Stochastic indicators are ready to decline, and the pair is forming an inverted head and shoulder pattern. This pattern suggests that the AUDUSD is likely to reverse direction and move up.

The AUDUSD is prone to volatility, with the highest volume in the morning and afternoon. The currency is also subject to news reports. Breaking news can lead to significant shifts, so be prepared. It is best to trade during the hours when both markets are open. Furthermore, the AUDUSD and NZDUSD tend to experience similar trading conditions.

When trading the AUDUSD, you must use technical analysis and knowledge of economic forces. You should also consider the relevant currency correlations, as the success or failure of one pair influences the performance of another. While the correlation between two currencies can be as high as one to one, it can change over time. The AUDUSD has been outperforming the US dollar in the past years. Its strong economic performance has made it a good trading currency pair for a variety of investors.

The Australian dollar was introduced as a decimal currency in 1966. In 1983, it was pegged to the UK sterling pound. Australia is one of the world’s leading exporters of commodities, and the value of its currency is closely linked to the global demand for these goods. In addition, it is the fourth most traded currency pair, making up 5.2% of all forex trades.

The Australian dollar has historically been propped up by its close economic ties with China, as it benefits from trade with this country. Additionally, the Australian dollar is influenced by its interest rate differential with the U.S. An increase in interest rates in Australia makes it an attractive investment. In the same way, a decline in interest rates in the US could make the AUDUSD less attractive than it was previously.

AUDUSD is one of the most popular currencies on the forex market, and it is an important currency pair to keep an eye on. Its low volatility makes it attractive to forex traders. In addition to having low volatility, the AUDUSD has excellent liquidity and high volumes. The pair’s liquidity makes it easy to trade in the forex market with low spreads.

Although Australia’s economy has generally performed well since the start of the century, it has been hit hard by the drop in the price of oil and coal in 2015. This slump has had a profound effect on the Australian dollar, and the Australian dollar dropped by 15% against the USD during that time. The drop in demand from China has also affected the value of the Australian dollar. As an exporter of raw materials, Australia depends heavily on the business climate in China. If China’s economy is struggling, Australian prices will fall and the Australian dollar will weaken.

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