The Aussie is the currency for Australia, It has become an acknowledge currency among traders. After a multi-decade asset boom gave the Australian Dollar its largest rate, traders were often times lured by the dividend rate varies in the pairing. This allowed traders to earn rollover amounts, while also gaining from a large portion in the pair. The US Dollar on the other hand is the currency of the United States. The currency code for Dollars is USD. The US Dollar is the most frequent converted currency in the world, as a dominant global reserve currency, it is held by nearly every central bank in the world. The Dollar is also used as the standard currency in the commodity market and therefore have an explicit impact on commodity prices.
LIVE AND HISTORICAL AUD/USD RATES
The chart is used to evaluate one currency over the other. For instance, the Aussie dollar (AUD) against the US dollar (USD), that is how many USD can buy one AUD. The pairing of the AUD/USD is also known as matie and aussie, and it is known as major currencies. By observing the currency pairs exchange rate history graph, one can get more previous performance regarding the two currencies.
THE AUSTRALIAN DOLLAR
The Australian dollar was introduced into the world market in 1966, the aussie dollar brought the decimal system to the Australian currency. Great interest rates and constrained interference from the Australian government assisted in making the aussie dollars the sixth most traded currency in the world. It is also strong because of the wealth of natural resources such as iron ore, coal, gold, crude oil and liquefied natural gas which are part of the major export. Some of Australia’s major trading partners are India, Japan, China and South Korea.
THE U.S DOLLAR
The dollar is involved in more offshore trades than any currency in the world. It is used for trading in several countries that do not hold the USD as a national currency, in fact, the majority of dollars are held outside the U.S. The Federal Reserve monitors the value of the dollar and is able to make changes to the value by adjusting to lending interest rates.
The U.S and Australia are not dominant trade partners, this is due to the strong connection it has to the southeastern Asia. The USD/JPY pair has a strong correlation to the AUD/USD. The Australian economy tend to fluctuate more than the US, this is due to commodity cycles. If a trader is well-versed and knowledgeable in commodities, this pair is an excellent way to profit from any major changes. Regarding pairs that involves AUD, it is also possible to trade the pair on any market gaps between Asia and the West. However, rarely is there opportunity to profit from carry trades with this currency.
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