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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 30, 2010 at 4:13 PM • Comment
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August 30, 2010 at 4:07 PM • Comment
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August 30, 2010 at 4:03 PM • Comment
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August 30, 2010 at 4:00 PM • Comment
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August 30, 2010 at 3:57 PM • Comment
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