What is the "Aussie"?
AUD/USD is aconsisting of the and the . In trading jargon, this pair is known as the .
It shows how many US dollars (the) it costs to purchase one Australian dollar (the ).
Trading AUD/USD "Aussie"
The Aussie is one of the seven major currency pairs that contain the US dollar and are the most traded pairs on the. It is considered to be very because the Australian dollar is the fifth most traded currency on the forex markets and Australia’s forex market is globally the seventh largest. Furthermore, Australia is a major exporter of with a stable government, adding to its value as a tradable currency.
As currency pairs are affected by external factors that influence an individual currency value, the AUD/USD willaccording to the difference in set by the and the . For example, any intervention by the Reserve Bank of Australia in the markets aimed at strengthening the AUD would be likely to see a rise in the value of the AUD/USD. Conversely, if the Fed takes action to strengthen the dollar by intervening in the markets the value of the AUD/USD would be likely to fall.
The Australian dollar enjoys a positive correlation to theas both countries are commodity-rich with similar economic structures. For this reason the Aussie is negatively correlated to , and because their base currency is the US dollar, versus the US dollar being the quote currency in the Aussie.
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