Known in the forex market as the "Aussie", the currency pair of the Australian Dollar and the US Dollar is one of the most popular in the FX market today making up at least five percent of the whole forex market by volume.
In the AUD/USD pair, the Aussie dollar is the base currency, while the American dollar is the quote currency. This means the price of the AUD/USD pair is quoted as 1 AUD per quoted number of USD. For example, if the pair is trading at 0.80, it means it requires .80 US dollar to buy 1 Australian dollar.
Traders talking about trading this pair may mention a phrase like this:
"We bought the Aussie at 7655 and it rose 100 pips to 7755."
If you're considering of investing on this currency pair right now then you better click on the button below to get started. This will open eToro's trading page for AUD/USD. Should you wish to continue, simply open an account with them but don't worry, this will only take a few minutes to do.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
After the Australian dollar replaced the pre-decimal Australian pound in 1966, it has become a popular currency pair for the US dollar. Following its pairing with the US dollar, the AUD/USD has become the fifth-most traded currency pair in the market today.
The Australian dollar became a "free-floating" currency in 1983, thus gaining interests among traders mainly due to a number of reasons such as government policy and Australia's rich supply of valuable commodities like iron, gold, coal, diamonds, wool and more.
Highly dependent on the movement of commodity prices thanks to Australia's reputation as a giant exporter of iron-ore and coal, this pair remains an attractive trading option because of the two countries' booming economies.
Other than negative economic news from Japan and the United States, other market factors includes the following:
Key market influencers for the AUD/USD currency pair includes financial institutions, banks, retail traders, commodity trading, moneychangers and hedge funds.
Two main things to watch closely when monitoring the price of the AUD/USD pair are the precious metals market and China.
Because Australia's economy produces large quantities of precious metals like gold, silver, iron and other main commodities, it only follows that the strength and the value of the Australian dollar would rely heavily on its export market of precious metals.
China on the other hand, plays the other integral role in influencing the Australian currency by simply covering more than thirty percent of Australia's export market. This forms a strong connection between Australia and China's economy. If China's economy is booming then expect more export goods to be bought from Australia, hence increasing commodity values and pulling the AUD upwards as well.
Contract-for-difference (CFD) is an agreement typically made between a broker and a trader or investor, where one party agrees to pay the difference in the price of a security, from the beginning and end of the trade.
Traders can opt to hold a long position by speculating that the value will go up or hold on a short position by speculating the value will decrease.
Trading on the AUD/USD pair via CFD, traders can speculate on the direction of the value of the currency pair. If you believe the Australian dollar will increase its value, then you may take settle on a long position by purchasing the CFDs. If you think otherwise—like the AUD losing value against the USD, then you may opt to take a short position putting the CFDs on sale.
eToro’s user-friendly interface and innovative trading platform permits traders to trade on their own time with zero transaction fees on currency trades. eToro also allow traders to trade for $30 for every $1 in their portfolio because it gives out a x30 leverage for currency pairs.
Currently, the AUD/USD currency pair has a 52-week range of $0.69909 - $0.80068 with a 1-year return of 0.55% and an all-time high of $1.994 in April of 2001.
AUD/USD's value is
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