AUD/USD – Rate, Chart, Analysis & News
AUD/USD is a Forex ticker that represents the price it will cost you in US Dollars to buy 1 Australian dollar. FX currencies are shortened to three-letter abbreviations for ease and are called ISO codes. The Forex market trades in these currency pairs and have a quote structure of Base/Quote (AUD/USD).
The live AUD/USD rate is shown below in an interactive chart that you can use for technical analysis. Our real-time news and analysis will keep you up to date with factors affecting the price movements of AUD/USD, both fundamental and technical.
AUD/USD Currency Chart
Recommended Forex Brokers to Trade AUD/USD
The AUD/USD pair is one of the major Forex pairs on the global market. Also called the Aussie – it represents the Australian Dollar against the US Dollar. The AUD/USD is the fourth most traded currency pair.
Various factors influence the value of the AUD/USD in relation to each other and other currencies. This includes the production of commodities (coal, iron ore, copper) in Australia, political factors such as the business environment in China (a major customer for Australian commodities), economic stability of the country and interest rate changes.
The Aussie is the fourth most traded currency pair based on average daily volume. It accounts for 5.2% of Forex trades, according to the Bank for International Settlements Triennial Central Bank Survey (2016).
AUD/USD Significant Price Movements
Due to Australia being a massive producer of iron ore, coal, gold and industrial metals, the movement of the Australian Dollar is heavily dependent on commodity prices. During the commodity slump in 2015, where oil prices hit decade lows and both iron ore and coal prices slumped.
In that period the Australian dollar dropped sharply by more than 15 percent against the U.S. dollar and nearly hit parity against the New Zealand dollar with 1 USD worth 1.41 AUS – weakest since the 1970s.
Additionally, the Australian Dollar (and economy) is closely linked to changes in the Chinese economy as China is Australia’s biggest export market. In 2018, the AUD/USD pair was stuck in a range between 73 US cents and 75 US cents, reaching its lowest level since January 2017.
The main factors that shook the Chinese economy in 2018 were the trade war with the US, the disappearance of the Made in China 2025 program, the growing local government debt and the collapse of non-bank capital markets in China.
Which is the best broker to trade the AUD/USD pair?
There are many brokers that support day trading of the AUD/USD pair. We are constantly evaluating new and existing brokers to recommend the most reliable ones. For more information, you can go to our page that reviews and compares the best Forex brokers to learn more about the different platforms where you can trade AUD/USD.
When I trade the AUD/USD pair will I own the actual currency?
No. CFDs allow you to speculate on rises and falls in the currency pair without having physical ownership. With CFDs, you only have to put in a fraction of the market value of the underlying asset when making a trade. Unlike investing, when you trade CFDs, you are not buying or trading the underlying asset. What you are buying/selling is a contract between yourself and the CFD provider.
How to trade the AUD/USD pair?
The AUD/USD is a currency pair that is highly leveraged to global growth. It allows traders to enter the Asian market while still dealing with a western-based financial system. Its ample liquidity and a low risk of central bank intervention makes the AUD/USD an excellent pair to trade based on fundamental factors.
Regardless of what strategy you use for AUD/USD day trading, the timing could make all the difference to profits. Whilst 24/7 Forex trading is available for this pair, certain time periods will offer greater levels of volatility and volume needed to generate substantial profits. Generally, the biggest daily moves and greatest volume during Australian working hours (overlapping with the Asian trading session) and during the most active US trading hours.
The three analysis techniques are fundamental, sentiment and technical. We’d recommend having a good grasp on the fundamentals because this pair isn’t as actively traded as others and so isn’t as liquid.
See other currency pairs live rates here.