How the AUDUSD Currency Pair Is Influenced by Trade Relations
The AUDUSD currency pair is influenced by trade relations between the two countries. Australia and the US have a close economic relationship and are trusted trade partners. Currently, the Australian economy receives US investments worth 860.9 billion dollars, and exports to the US have increased by nearly twofold since the AUFTA came into effect. Furthermore, most commodities and other goods exported from Australia are denominated in US dollars. This makes it easy to see why the AUDUSD currency pair is so important for Australian and US businesses.
While the AUDUSD is largely supported by commodities, its outlook for a further rise is still uncertain. Higher commodity prices have boosted ASX200 stocks, and these sectors should also benefit the AUDUSD. Conversely, weaker than expected 4Q Wage Price Index data has forced a reassessment of aggressive rate hike expectations. Overall, the AUDUSD currency pair remains a popular currency pair in the world. It is also widely traded during the Asian and Pacific trading sessions.
Technically, the AUD/USD currency pair is carving out a Bull Flag continuation pattern. A daily close above the 100% Fibonacci level would signal a resumption of the primary uptrend, and pave the way to the psychologically imposing 0.7800 mark. While the implied measured move suggests prices could climb up 3.9% to 0.7860, a slide back below the December 23 low may neutralize near-term buying pressure and trigger a pullback towards the December 7 high.
The Australian economy and trade relations with other countries are two major factors that influence the AUD/USD. Trade relations with Asian nations are of great importance to the Australian dollar, but trade with the U.S. is the largest influence on the AUD/USD. Moreover, the interest rate differential between Australia and the U.S. may also affect the AUD/USD’s value. If Australian interest rates are higher than those in the U.S., the Australian dollar is attractive. Conversely, if U.S. rates rise, the dollar may lose its attractiveness.
Currency trading with the AUD/USD pair can be a lucrative way to make money. The AUD/USD currency pair is also known as the ‘Aussie’, and is a commodity currency whose value is determined by the prices of agricultural and commodity exports. Its high liquidity makes it a popular choice for carry traders. Interest rate differentials and banking announcements are other major influences. And of course, the AUD/USD currency pair is a popular choice for carry trader.
Understanding the AUD/USD currency pair’s relationship with other currencies is also important for trading in it. In the past, the AUD/USD currency pair has been the third most popular currency pair in 2012, thanks to the stability of its economy. This has been partially attributed to the country’s stable trading relationship with China, high interest rates, and its commodity exporting. All these factors make the AUD/USD pair an excellent investment choice for the aspiring FX trader.
The currency is traditionally viewed as “risky” by traders because it has historically tended to fluctuate between high and low values. Despite this, the AUDUSD is currently trading at just 0.5% below its February 10 highs. The S&P500 is down nearly 5% from its February 10 highs. While this is not a huge amount of movement, it does indicate a weaker economy. This could lead to higher interest rates and more volatility.
When trading the AUDUSD currency pair, it is important to understand what influences these prices. The Australian dollar is a base currency, while the US dollar is a quote currency. In forex trading, AUDUSD is a major pair that’s heavily influenced by commodities and market risk sentiment. This means that if the AUDUSD is moving up and down in the same direction, it can have strong implications for your trading strategy.