The Australian dollar is a popular currency that is paired with the US dollar. The pairing accounts for about 5% of all trading in the world. Day traders can experience high levels of volume and volatility because there are different interest rates in each country.
In this market, the Australian dollar is the base currency. The US dollar is called "the quote currency." This means that in any time, one Australian dollar will buy you one US dollar.
The AUD/USD pair is a way to trade the Aussie dollar and US dollar. It is popular right now because there was a boom in Australia after 2000. You can trade these two currencies together or you can trade one of them with a contract for difference (CFD) and try to guess how much they will change in price.
You can trade the AUD/USD currency pair by using CFDs. You can buy or sell CFDs. If you think that the Australian dollar will gain value, then you would buy CFDs. If you think it will lose value, then you would sell them.
The Australian dollar is connected to currencies that are based on commodities. The most obvious one would be the New Zealand dollar. They both have economies that are very similar and sensitive to Asia.
New Zealand has many soft commodities, like agricultural products. Australia also has commodities like iron and copper. As more people buy things in general, both of these countries will do well.
Over the long-term, both the Australian dollar and New Zealand dollar should move in the same direction as the US dollar. This is because they are both currencies in countries that have a lot of natural resources. Some currencies in other countries are also correlated to these two, but they are not as influential.
The AUDUSD changes depending on a number of economic factors.
A global currency is a money that people will accept. Some currencies are accepted all over the world. These include the U.S. dollar, the euro, and the yen. A reserve currency is another name for a global one.
The U.S. dollar is the most popular currency in the world. It is bigger than any other country's currency, and it makes up over 60% of all known central bank foreign exchange reserves, even though it doesn't hold an official title.
In the foreign exchange market, the dollar is important. When people trade, most of them are trading U.S. dollars. There are 185 different currencies according to the International Standards Organization List, but most of these currencies are only used inside their own country instead of being used for trading with other countries.
Governments are willing to hold the dollar in their foreign exchange reserves because it is strong. Governments get dollars when they do international transactions. They also get them when people bring dollars back to the country and exchange them for local money.
Australia is a country with a lot of industry. Mining and exporting goods are important parts of the Australian economy. The things that Australia exports include iron ore, coal, and education (which might seem weird but it's true). Agriculture is also an important part of the Australian economy because it exports food like wheat and beef to make money.
Australia’s economy is strong because it trades with countries that have money. These places are China, Japan and other countries that are doing well.
The interest rates in Australia are higher than those in other countries. This is because the Royal Bank of Australia (Australia's governing financial institution) wants to stop inflation as much as possible.
These factors all add up to making Australia's economy stronger than other countries around the world.
AUD/USD (sometimes written AUDUSD) is the abbreviation for the Australian dollar and U.S. dollar currency pair or cross. The AUD/USD is the fourth most traded currency but is not one of the six currencies that make up the U.S. dollar index (USDX).
The AUD/USD is a currency that trades in the market. It helps you trade in Asia while also dealing with a western-based financial system. It is highly liquid and there's little risk of central bank intervention. You can enter the AUD/USD if you want to take on a position based on fundamental factors.
Based on Australian Eastern Standard Time, forex market hours are Sydney, 7:00am – 4:00pm AEST; at 9:00am the Tokyo (Japan) market comes online and before it closes, the London market comes online at 5:00pm; New York opens at 10:00pm and closes at 7:00am when the Sydney (and New Zealand) Forex market opens again.
Its popularity among traders is due to various factors related to geology, geography, and government policy. For example, if the pair is trading at 0.75 it means that it takes 0.75 U.S. dollars to buy 1 Australian dollar. The AUD/USD is one of the world's top-traded currency pairs.
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