AUD/USD Live Charts and Information

The AUD/USD pair is one that many traders use as a proxy for the gold market. This is mainly because Australia is one of the world’s largest exporters of gold, so therefore it makes sense that as there is more demand for gold, there will be more demand for the Australian dollar in order to pay the local miners. On top of that, you have to keep in mind that gold is priced in US dollars, so it makes sense that the value of the US dollar falls as the value of the gold rises. However, do not take that correlation to seriously, because both can in fact go in the same direction at times. This is more or less a bit of a generality.

On top of that, Australia exports a lot of minerals and other metals to Asia. With that being the case, the Australian dollar is also used as a proxy for Asian economic growth. For example, when the Chinese start large construction projects, they will often have to buy massive amounts of copper. Australia is far and wide the largest supplier of copper to Asia. Because of this, there is also a bit of a correlation between the value of copper and the Australian dollar much as there is between gold and the Aussie.

AUD/USD Live Chart:



 

Generally speaking, Australia has higher interest rates than Europe and the United States. Because of that, is also considered to be a “riskier” currency to own. This is not to say that the Australian economy is flimsy or to be treated with suspicion, it’s rather to say that it is highly driven by economic growth around the world. It is a commodity driven economic landscape in Australia, so the Aussies need the rest of the world to be doing fairly well in order to prosper themselves. When there is a lot of construction, Australia will always do well because of the fact that it supplies so many expanding regions around the world.

Major Economic Events that Affect the AUD/USD Pair:

The AUD/USD pair can be influenced by a lot of the same economic announcements that you see around the world. For example, GDP numbers out of Australia and the United States can obviously move this pair. Employment numbers will also have the same effect, and of course interest-rate announcements by the Reserve Bank of Australia and the Federal Reserve will move markets as well. As stated previously, the price of gold and copper can also have an effect, and by extension of the Asian growth factor, Chinese economic numbers tend to have a disproportionate amount of influence on the Australian dollar as well. In fact, since you cannot freely trade the Chinese yuan, the Australian dollar is often used as a proxy for that currency.

Spreads in this pair are typically around three pips, and as a result it is a pair that is traded by most traders. It’s a very liquid pair, mainly because it is uses a proxy for so many different commodity markets and regions of the world. With that, it is very stable although it does tend to move a bit quicker than other pairs such as the EUR/USD pair. There is no special time of the day that this pair moves more than others, although it should be noted that during the Australian open it quite often will make a bit of a search or decline suddenly. However, there just simply isn’t enough liquidity in the marketplace at that time to significantly impact the pair. The Australian dollar is being used as a proxy by so many large firms around the world that it can be basically traded at any time, with very little difference in the way it behaves. Because of this, it is one of the favored currency pairs of both short-term and long-term traders.

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