AUD Exchange rate can be displayed in the form of tables and graphs. Regardless of which type of pictorial representation is used, the primary aim of the representation is to give the trader an idea of what the exchange rate looks like at the time of access. AUD exchange rate graph is a pictorial representation of the currency exchange rate by plotting the exchange rate on the vertical axis and the time on the horizontal axis.
USES OF AUD EXCHANGE RATE GRAPH
1. The AUD exchange rate graph can be used to study the future and historical rates of the currency against other major currencies in the world. Most often than not, each currency pair is represented by an exchange rate graph.
2. The AUD exchange rate graph gives the trader information at a glance. Information such as the exchange rate high and low, opening and closing rate and spot rates can be easily extrapolated from the graph.
3. The AUD exchange rate graph comes in handy in studying the market behavior of the currency pair. Since it displays the exchange rate of the currency pair over time, the market behavior of the currency can be easily calculated.
ADVANTAGES OF AUD EXCHANGE RATE GRAPH
The AUD exchange rate graph has the following advantages;
1. PROVISION OF INFORMATION
All data representation is used for the presentation of data in a manner that can easily be understood by the trader. This information can be used to perform several operations concerning forex trade. Operations such as calculation of the future rates, and market behavior over a period of time can be easily calculated.
2. IT IS USED IN PLANNING
Any forex broker that fails to plan ahead of the market will definitely fail in the long run. In order to be a successful trader, there is a need to plan the investment by putting the exchange rate into consideration.
3. IT IS USED FOR PREDICTION
By studying the previous exchange rates in the currency pair, the trader can be able to correctly predict the market outcome when trading with the currency pair at the time of study.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.