The latest audusd technical analysis is stating that the AUD/USD pair has been stealing the limelight by becoming a favoured vehicle for traders. Belonging to Majors (a group of most popular traded currency pairs), this Aussie pair (trading of AUD/USD currency pair is also referred as Aussie) is attracting both experienced as well as new traders because of the pair's differential rate.

AUD/USD pair’s current value is quoted as 1 Aussie dollar per 0.75 US dollar.

A differential interest rate between the Reserve Bank of Australia (RBA) and the Federal Reserve (Fed) affects the values of AUD and USD which influences the relation between both currencies.

You can understand the audusd technical analysis when you can see Fed intervening in open market activities to strengthen the US dollar as compared to the Australian dollar. The US dollar when gains its currency strength affects the AUD/USD by declining its value.

Historical Facts

In the year 2000, AUD saw an enormous commodity boom. It continued to the initial two decades accompanying post-World War II, economic expansion and the Second industrial revolution in the latter half of 19th century and during  the initial phase of the 20th century. This commodity super cycle also touched the Chinese industrial boom. These sudden changes in commodity prices instigated in surging a hike in oil prices, thereby causing high price volatility in the trading attribute.

Current audusd technical analysis

Currently, you can find a decrease in aud/usd somewhere in between 0.05% to 0.75%. If you compare the rate of change in aud/usd to the previous month, you can see a movement of -1.91% and an average hike of 4.61% the previous year.

Recently a reduction in a September rate hike due to lower retail sales supported the Australian dollar by decreasing the value of US dollar. A rally in the US equity market also helped to increase the demand for higher risk asset helping the Aussie dollar underpin or support in this process.

Future Prediction

According to Trading Economics global macro models and analysts’ expectations which are projected using an ARIMA model (autoregressive integrated moving average), you can expect the Australian dollar to be traded at 0.75 by the end of 2016. It is also estimated to be traded at 0.73 within the coming year.

According to audusd technical analysis, Australian Dollar to US Dollar forecast calculation for 2016 predicts a beginning with a dipping movement in between 0.77 to 0.75. Its maximum rate will remain more or less constant with 0.77 with a slight hike of 0.79 at the very end of 2016. AUD/USD's minimum rate will continue to be constant at 0.74.

You can witness a beginning forecast rate in between 0.75 to 0.78 with its maximum rate fluctuating from 0.78 to 0.80 and its minimum rate in between 0.74 to 0.76 in 2017s opening quarter. Audusd technical analysis also predicts its exchange rate to be at a constant with 0.77 with an average change of 0.68% for initial four months.

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.

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