AUD USD Investing
Minimum spread- 0.5
Typical spread- 2.7
Minimum nominal trade size- 1000
Overnight interest (annual) sell- -3.10%
Overnight interest (annual) buy- 0.90%
Trading hours (GMT) – 24*5
AUD/USD is the ticker that represents the strength of the Australian dollar against the U.S dollars. In recent year, the Australian has become a preferred currency of traders. The value of Australian dollar has grown rapidly over the several decades due to boom in the commodity. AUD/USD pair is famous for the difference in the interest rates which often attract traders and gave the trader the opportunity to earn on opening a long position on AUD/USD currency pair. Recent events have contributed to a reversal of trend due to economic difficulties in China and decrease in the demand of metal and many other commodities.
In the AUD/USD currency pair, AUD represents the Australian dollar, which is the base currency, and USD represents the US dollar, which represents the quote currency. At any given point of time, AUD/USD represents the number of dollars it would take to exchange for one Australian dollar.
Like the U.S dollar, the Australian dollar has the same symbolic-$. The International Monetary Fund has given recognition to the Australian dollar for more than 5% of the international settlement.
Historic Highs and Lows for AUD/USD
The AUD/USD Pair is popular buy the name of “Aussie” and the relatively high liquidity of AUD has made it more attractive pair for currency traders.
All-time high record: the Aussie has made a high of 1.4850 in 1974 and a record low of 0.4778 in 2001.
Current financial year record high and low: the Aussie has made a high of 0.73 and a low of 0.67 for the year 2019 with a total net change of -2.22%.
Understanding the AUD/USD price
The rule to read the price quote is similar to any other pair. In AUD/USD, the Australian dollar represents the base currency in relation to the U.S dollar. Thus when the AUD/USD rally that means the Australian dollar is gaining strength over the U.S dollar and the Australian dollar loses its strength when AUD/USD falls. The price quote of AUD/USD means the amount of U.S dollar, which is equivalent to one Australian dollar. For example, when AUD/USD quotes 0.3152 prices, it means one Australian dollar is equivalent to 0.3152 U.S dollar.
Key Factors to keep in mind while trading AUD/USD
Monetary Policy Impact
Reserve Bank Australia (RBA) controls the rate and updates are released every month. The change in the interest rate can cause considerable movements in the AUD/USD.
The Australian government and its financial department, which make and implement policies can affect the price movement of AUD/USD.
The Federal Reserve is also a significant body which often followed by traders to anticipate the price movement. The Fed is an independent supervisory federal agency that includes 12 reserve banks in different states, which in turn have thousands of commercial banks. The Fed revises the Federal funds rate eight times a year.
The economic calendar offers a significant amount of information. Some of the essential data are:
- CPI-consumer Price Index
- GDP– gross domestic product
- PMI– purchasing managers index
- Trade balance
Why trade in AUD/USD with CAPITAL STREET
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- Trade using Margin- Get greater exposure to the marketplace with a small deposit and spread your capital using margin.
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- Safety of funds