The right time to buy AUD/USD or the best time to enter forex trading would depend on many factors. Reaching out to a trusted forex trading platform like seven capitals would be ideal to get proper guidance in this regard.
We charge just minimal brokerage for AUD/USD trading. At the same time, we provide the best tools for making the best out of AUD/USD investing. You may contact us to know about brokerage and other details.
Excellent profit prospects have been the first reason for the increased acceptance of AUD/USD trading. Australia is a financially strong and developed country and AUD is a strong currency compared to many others. These are the other reasons that made AUD/USD investment more popular than most others.
Known as “Aussie,” the AUD-USD is traded in high volumes. The minimal spread and high liquidity, compared to the minor currency pairs, as well as, those exotic ones make AUD/USD investing an attractive choice. Evaluated to be the fourth most traded currency pair, trade market specialists often suggest investing in this combo.
AUD is the base currency and the USD is the quote currency in AUD/USD trading. That means the amount of USD exchanged for an AUD determines the profit margin. Australia being a commodity market, AUD has strong links with commodities.
AUD/USD investing can yield high returns. Guidance from forex trading experts or an in-depth analysis by the investor, supported by a proven platform, is instrumental in remaining successful in this volatile sector
Prior to 1966, the non-decimated Australian Pound pegged to the UK Pound was the currency of the country. The Australian dollar was introduced in 1966. The AUD/USD trading pair came into existence well after that. Australia is an economically developed nation, focusing mainly on exports of precious metals and minerals.
The AUD is called commodity currency, as its value is directly linked with the global spot commodity prices. A main exporter of iron ore and coal, the fluctuations in their prices due to variations in demand or any other condition, can impact AUD. Traders involved in AUD/USD investing consider these factors prior to making a decision.
As of today, China is the biggest importer and a strong trading partner of Australia. It is estimated that one-third of the country’s export is to China. Now imagine the effect of the Chinese economy on AUD, and eventually on AUD/USD trading. The US has been another trading partner of Australia, though not as big as China.
The analysis indicates that the AUD/USD pair has been trading between 0.8300 and 0.6500 for quite some time now.
Understanding the major price drivers is the first step towards AUD/USD investing. Then only a trader can calculate the moves and determine the right time to invest and the best range to take profits.
The People’s Republic of China has been a major trading partner of Australia for decades. They are the major importer of Australian commodities. Hence, anything happening with China’s economy would affect the AUD directly. Consequently, the extensive financial growth of China since the beginning of this millennium led to the phenomenal strengthening of AUD. The Chinese policies, financial reports, news of recession or expansion, etc. have to be monitored before commencing AUD/US trading.
The Reserve Bank of Australia meets on the first Tuesday of every month, excluding January. They publicize post-meeting minutes about two weeks later. The subject minutes of the meeting directly result in the strengthening or weakening of the AUD. Even a remark from the board members can cause a change of value.
The Australian Bureau of Statistics (ABS) studies scenarios and publishes reports on economic and social conditions. The factual data shared by the agency is indicative of the country’s exact status. This can lead to a rise or drop in the value of the AUD against other currencies, including the USD. Consumer Price Index (CPI), Trade Balance, etc. released by the authority on specific periodicities must be noted meticulously if you want to earn the best from AUD/USD trading.
The Australian economy depends on commodity exports. The commodity price in the global market will influence the export profit margins. Hence, it would affect the value of AUD.
Of course, the rise and fall of the USD also change the game. The trader should also look into the reports of the US Bureau of Labor Statistics before going ahead with AUD/USD investing.
The US Federal Reserve ascertains the financial conditions and revises interest rates eight times a year. The monetary policy promulgated subsequently has a direct impact on the USD’s value. Therefore, every AUD/USD trader is keen on the subject report.
AUD/USD investment offers great yield if done correctly after necessary analysis and studies. Mentoring many successful forex traders, and delivering exceptional profit over a period of time, Seven Capitals has been a trusted platform for AUD/USD trading. The reasons we suggest you opt for AUD/USD pair include:
You might need a reliable mentor, a comprehensive platform, and productive tools for investing in AUD/USD trading. These would elevate the profitability to the next level. If you have been looking for AUD/USD trading, connect with us now.
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