How the Australian Dollar Affects the AUDUSD
Despite being one of the smallest countries in the world, Australia’s currency has a very stable price. Many factors make Australia’s currency so attractive, from its geography to its abundant supply of commodities. Additionally, the country’s stable interest rates and economy make it an ideal place for trade with Asian countries.
Interest rates play a major role in the AUD/USD’s price, and the RBA, the central bank of Australia, has a large impact on the currency’s value. The interest rate differential between the United States and Australia is another factor that can change the AUD/USD’s value. If the Australian interest rate is higher, the Australian dollar will become more attractive to investors. Conversely, if the U.S. interest rate is lower, the currency’s value could depreciate.
The AUDUSD forecast poll shows a moderately bullish outlook for the next five years. The AUDUSD is currently trading at 0.65096, but a move above the 200 hour MA would target a range of 0.6531 to 0.6537, as well as the 38.2% retracement level of 0.65738.
Australia and the US have very close trade relations, and this relationship affects the AUDUSD’s price. US exports to Australia have increased by ninety-one percent since the Australia-United States Free Trade Agreement (AUFTA) came into effect in 2005. However, Australia has a lot of exports to other countries, so trade with them is crucial to its economy.
The AUDUSD currency pair is a popular currency pair that is widely traded on the forex market. Traders are encouraged by the tight spreads of this currency pair, which often stays within a 1 to three pip range on most forex brokers. This low spread allows you to trade in high volumes and with minimal risk.
The AUDUSD pair has been gaining popularity in recent years. Since Australia is one of the world’s biggest commodity exporters, the value of the AUD/USD is closely tied to global demand for these commodities. In fact, the AUD/USD pair makes up the fourth most traded currency pair and accounts for 5.2% of all forex trades.
Australia’s exports are heavily dependent on China, so if the Chinese economy suffers a downturn, it will also impact the AUDUSD’s value. Furthermore, the AUDUSD’s value is linked to the price of gold, which is considered a safe haven against inflation and has become one of the most traded commodities.
The value of the US Dollar and the Australian Dollar is influenced by the actions of the US government. The Federal Reserve of the United States (Fed) is the central bank that controls the US monetary policy and manages interest rates. It also sets the reserve requirement for banks and acts as a lender of last resort during financial crises.