AUD/USD is one of the most popular currency pairs traded today. It belongs to the Majors group. It is the fifth most traded currency pair in the world. The Australian economy is performing well.
There are many factors that influence the AUD/USD pair. However, one of the major influences is the trade relations between Australia and the United States. These trade relations have helped prop up the AUD. However, they can also cause serious fluctuations in the price.
The AUD/USD chart shows that the currency is approaching its initial resistance objectives. It could break through this week’s lows and then resume its long-term uptrend. However, if the currency breaks this week’s lows, it could lead to a downward breakout.
The AUD/USD is closely linked to trading relationships in Asia. The Australian economy is impacted by commodity prices, which are often correlated with the currency. If commodity prices rise, the AUD will appreciate. However, if commodity prices fall, the currency may suffer. These fluctuations can have serious financial consequences.
In addition to commodity prices, the Australian economy is also impacted by trade relations with China. In the past, Australia has run a large trade surplus. However, trade relations have been declining since 2006. This can negatively impact the currency. However, if the trade balance stays positive, the AUD would be positively impacted. The trade balance measures the balance of imports and exports of total goods. If the balance stays positive, it means that the demand for AUD exports is high. The AUD would benefit from increased demand for AUD exports.
The AUD/USD pair can also be impacted by economic data released by the United States. It is important to be aware of this. The Federal Open Market Committee (FOMC) holds meetings every few weeks and releases forecasts. The Fed plays a key role in monetary policy. They set the reserve requirement for the banking sector and act as the lender of last resort during times of crisis.
In addition to the US Federal Reserve, the Federal Bank of Australia plays a role in the Australian Forex market. This is why it is important to follow the AUD/USD pair closely. The US and Australia have a close economic relationship. The economy has grown since 2001. The Australian dollar is also positively correlated to the Canadian dollar. This means that traders who are familiar with the Canadian dollar may have better success in the AUD/USD pair.
The Australian economy has been performing well for the past several years. However, there have been several economic factors that have caused the Australian dollar to decline. One of these factors was the 2008 global financial crisis. In addition, wars and terrorist incidents can cause serious fluctuations in the currency.
There are many factors that can affect the currency, including interest rate differentials and commodity prices. The Australian economy has grown year on year since 2001. The economy has a strong AAA debt rating that shows political stability.