You will learn about the following concepts
- Introduction to AUD/USD pair
- The Aussie versus the US dollar
- Exchange rate factors
AUD/USD is one of the eight major currency pairs. Trading AUD/USD is often called trading the Aussie, so do not be surprised if you read or hear this term somewhere. Although this is one of the most traded currency pairs, it is far less popular than the GBP/USD or the EUR/USD. However, despite its lower popularity, you should keep in mind that AUD/USD is one of the best pairs for beginners, because it is strongly affected by several factors which we will discuss in this post.
The Aussie versus the US dollar
This currency pair is often called the Aussie, because the Australian dollar is the base currency. This means that the exchange rate of this pair shows how many U.S. dollars one has to spend in order to purchase one Australian dollar. As of September 11th the current rate of the Aussie is 0.9123, so a trader would have to spend 0.9123 American dollars in order to buy one Australian dollar.
Best Forex Brokers for United States
The Australian dollar is the sixth most traded currency in the world, so you can find plenty of information about it on the web. Never forget that the value of the Australian dollar is strongly affected by several factors. Pay close attention to them, because they will help you determine when it is the right time to bet on AUD/USD binaries.
Exchange Rate Factors
One of the factors to influence the value of AUD/USD is the interest rate difference between the Reserve Bank of Australia and the Federal Reserve. Naturally, actions which strengthen or weaken the American dollar also have an impact on the exchange rate of AUD/USD – if the Federal Reserve is engaged in market activities in order to strengthen the U.S. dollar, then the value of AUD/USD will decline.
The Australian economy is in a relatively good condition and it is gradually progressing in an upwards direction, so it is expected that the value of the Australian dollar will continue to grow. Traders are advised to keep a close eye on the latest economic news from Australia in order to determine what will happen with the AUD/USD exchange rate. It is a well-known fact among experts that AUD/USD is strongly influenced by the European Trading Session, so many people use this period to trade AUD/USD binary options.