The study of the exchange rate history has gained popularity over the years due to the need to adequately plan and execute forex trading strategies which may be alien to the trader. Before engaging in any form of trading strategy, the trader will have to be able to understand the exchange rate history of the currency pair he/she will be trading with.
Exchange rate as the name implies, refers to the amount of money in one currency that needs to be given up in order to obtain its equivalent value in another currency. The exchange rate is used to study the past, present and future behavior of a currency pair in the forex market. AUD to USD exchange rate history refers to the study of the past exchange rate values of the currency pairs in order to forecast the market value and future behavior of the currency in the market.
HOW TO STUDY HISTORICAL RATE
The best way to study the historical rates is to visit a foreign exchange site and choose the currency pair of choice. After making a choice of the currency pair, select the time duration from which you want to obtain the information. Crosscheck the values and take note of the highs and lows. After the study try to see how the currency fared in the time of study and then using the data at hand predict what the future rates will likely become by taking into cognizance factors such as inflation, the US economy, the Australian economy, commission and forces of demand and supply.
PROS AND CONS OF AUD TO USD EXCHANGE RATE HISTORY TO TRADERS
AUD to USD historical exchange rate has the following advantages to the trader.
1. PROVISION OF INFORMATION
The AUD to USD exchange rate history values gives the trader valid information about the nature and behavior of the currency pair in the market. It gives the trader an insight into how the currency pair has fared over a selected period of time, say three months for example.
2. IT IS USED IN PLANNING
The forex market is all about taking calculated risks. With the AUD to USD historical exchange rate values, the trader can be able to sit and plan on the best way and time to invest into the market in order to obtain maximum profit.
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 major disadvantage associated with the exchange rate is that it is not stable and the predictions may be totally wrong.
At the time of writing this, the exchange rate of the AUD to USD was at 1AUD per 0.7667291 USD.
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.