AUD USD historical chart is one of the numerous ways the exchange rate of a currency pair can be displayed for the viewing pleasure of the traders. With the increase in international trade and the need for more foreign exchange transactions, studying the exchange rate history of a currency pair has gained popularity over the years. One other factor that has led to the increase in the need for historical forex rates is the need for planning and test running forex trading strategies which may be appear as something new to the trader.
The forex market is controlled by exchange rates hence, the great need to be informed about the market value and behavior of currency pairs over time so that they can be traded better and the trader can either decide when to enter or leave the market.
The historical chart just like the AUD USD historical chart usually comes in currency pairs to assist the trader in knowing how the pair of interest is faring and how much is needed in order to obtain its equivalent amount in another currency. The historical chart is made up of forex exchange rates which have been gathered over time and accessed for the purpose of studying the past, present, and predicting the future rates of the currency in question, in this case, AUD to USD. This study goes a long way in serving as a guide to the trader on the best decision to be taken regarding trading in the currency market.
HOW TO STUDY AUD USD HISTORICAL CHART
The best way to study the historical chart is to visit a foreign exchange site and choose the currency pair of choice (AUD/USD). 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 USD HISTORICAL CHART
AUD USD historical exchange rate has the following advantages to the trader.
1. PROVISION OF INFORMATION
The data being represented in the form of charts makes it easy for the trader to easily understand what the exchange rates looks like without any external help. The data are presented in a simple manner which can be understood even by a novice trader. The simplicity of the data presentation 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 FOR PREDICTION
One of the very important uses of history rates is for the prediction of trade outcome. 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.
3. IT IS USED IN PLANNING
All forex rates are used for planning and anticipation of the future market in order to derive profit from the invested amounts. The AUD USD historical charts come in handy when a trader is trying to plan on how well to enter the market in order to obtain maximum profit.
The major disadvantage associated with the exchange rate is that it is not stable and the predictions may be totally wrong.
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.