AUDUSD currency pair is composed of the Australian dollar (AUD) and the American dollar (USD), and is rated among major currency pairs. This financial tool is characterized by high liquidity and considerable exchange volume. Australia (AU) is considered to be one of the world’s biggest suppliers of gold. Gold is exported in the unprocessed state, and the gold export represents quite a significant part of the country’s GDP, that’s why Australian dollar is often called a "commodity currency".
Gold is a good means of protecting funds against inflation for many traders, and quotes of the Australian dollar are quite similar to the movements of gold, although not absolutely identical. Investing in Australian dollar can be a good solution for diversifying risks when trading on the Forex market. Since Australian dollar serves as a base currency in the above mentioned currency pair, the purchase of AUDUSD lot is equivalent to investing in Australian dollar, whereas the selling of this lot corresponds to investing in American dollars.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.