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Live and Historical AUD/USD Rates
The chart above shows the aussie dollar (AUD) against the US dollar (USD)-that is how many USD can buy one AUD. The pairing of AUD/USD is also known as matie and aussie, and it is considered a commodity pair because of the aussie's strong correlation to gold. Both USD and AUD are considered major currencies.
The Australian Dollar
With an introduction into the world market in 1966, the aussie dollar brought the decimal system to the Australian currency. Since 1983, AUD has been a floating currency. High interests rates and limited interference from Australian government help make the aussie dollar the sixth most traded currency in the world. AUD is also strong because of Australia's wealth of natural resources. Iron ore, coal, gold, crude oil, and liquefied natural gas are among Australia's major exports. Another reason the aussie dollar is so strong is Australia's unique connection to Asia. Some of Australia's major trading partners are India, Japan, China, and South Korea.
The U.S Dollar
The dollar is involved in more international trades than any other currency in the world. It is used for trading not only in the United States but also in several other countries that do not hold USD as a national currency. In fact, the majority of dollars are held outside of the US. Though the dollar was pegged to 23 different currencies early on, the US led the way with floating currencies in the early '70's. The Federal Reserve keeps very close control over the value of the dollar and is able to make changes to the value of the dollar by adjustments to lending interest rates.
The US and Australia are not major trade partners. Because of Australia's strong connection to southeastern Asia, the USD/JPY pair has a strong correlation to AUD/USD. The Australian economy does tend to fluctuate more than the US, because of commodity cycles. If a trader is well-versed in commodities, this pair is an excellent way to profit from any major changes. As with most pairs that involve AUD, it is also possible to trade this pair on any market gaps between Asia and the West. Only rarely is there an opportunity to profit from carry trades with this currency.
August 02, 2010 at 4:31 PM • Comment
NZDUSD began the week on a firm note in spite of the favorable U.S. New Home Sales data that came out on Monday. On Tuesday, the pair made its weekly high of 0.7394 - a level not seen...Read More
August 02, 2010 at 4:27 PM • Comment
GBPUSD started the week on a soft note making its weekly low of 1.5408 Monday before subsequently rallying sharply. The pair continued the rally Tuesday after U.K. CBI Realized Sales came out at a whopping 33 in July,...Read More
August 02, 2010 at 4:23 PM • Comment
EURUSD started the week off making its weekly low of 1.2876 on Monday as the Euro was pressured early in the session. The pair then reversed and began rallying despite positive U.S. New Home Sales coming in better...Read More
August 02, 2010 at 4:16 PM • Comment
AUDUSD rose again last week as risk appetite continued to favor the commodity currencies. The pair started the week on a positive note Monday, despite news that Australian PPI had risen by only 0.3% last quarter versus an...Read More
July 30, 2010 at 4:06 PM • Comment
Bloomberg is publishing a report today about the $1.4 trillion commercial mortgage portfolio of U.S. banks, and how about 40 percent of it is already delinquent. Elsewhere we read about some financing needs of European banks this year, of...Read More