An Australian forex chart can be defined as a trading graph that displays the movements of the Australian dollar (AUD) when paired with a match currency in the forex market. This chart expresses the past performance of AUD, and identifies such records at different and specific time. This chart have the capacity to portray low, high and average prices of the AUD when compared to other currencies. This information helps a trader to make accurate decisions on when and when not to buy or sell an AUD.
THE AUSTRALIAN DOLLAR AND ITS INFLUENTIAL FACTORS
The AUD, also known as the Aussie, is ranked as the sixth world’s highest traded currency as of the year 2008 which basically accounts to 5 percent trade in forex transactions. The term Aussie distinguishes the AUD from every other dollar in the market, and is the dominant currency of the commonwealth of Australia, Norfolk, island, Christmas Island and the cocos island. The Aussie is mostly influenced by geology, geography and government policies.
Australian geology is known for its wealth in natural recourses which includes gold and oil. The use of these natural resources helps in the buildup of the nation’s economy. This factor is also a major determinant of the AUD currency fluctuations and change in commodity prices. With regards to its geography, its location makes the Australian dollar a popular trading ground for fast growing nations. The government policy which is attributed to stability in interest rates and monitory policy favors the trade of Aussie.
The AUD CHART
In the Australian dollar chart, the AUD is majorly grouped with the majors in like the USD. AUD/USD is a pair that stands for the abbreviation for the Australian dollar and the United States dollar. These pair states how many US dollar is needed to buy one Australian dollar. In this commodity, the US dollar is the quote currency while the Australian dollar is the base currency.The values of this commodity is quoted as 1 dollar per × US dollar which means that if it is trading at 1.50, it takes 1.50 US dollar to buy 1 Australian dollar.
The Australian dollar chart has the ability to generate and indicate major information regarding the overall performance of the AUD including its high volatility rates.Due to the volatile nature of AUD/USD pair, breakout strategies work best during market trends. Using the Australian dollar chart to identify break out strategies, forex traders has the ability to monitor support and resistance while waiting for a break of price level with expectation that once the break occurs, price will continue to rise which will eventually lead to profit maximization.
In conclusion, the Australian dollar chart contains a lot of statistics that will help a forex trader trade the AUD with a better accuracy and success. The chart has less mistakes and can be used and interpreted easily.
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