AUD/USD Exchange rate


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Editors’ Picks

EUR/USD rises toward 1.0800 as USD weakens

EUR/USD rises toward 1.0800 as USD weakens

EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.

EUR/USD News

GBP/USD closes in on 1.2300 as mood improves

GBP/USD closes in on 1.2300 as mood improves

GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.

GBP/USD News

Gold recovers above $1,950, stays deep in red

Gold recovers above $1,950, stays deep in red

Gold price has managed to stage a modest rebound in the American trading hours and rose above $1,950 from the daily low it set at $1,944. The benchmark 10-year US Treasury bond yield is still up more than 3% despite having retreated from session highs, not allowing XAU/USD to gain traction.

Gold News

Four reasons why SUSHI holders will have a bullish week despite SEC's move

Four reasons why SUSHI holders will have a bullish week despite SEC's move

SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.

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Alibaba (BABA) edges higher after Jack Ma returns to China for AI talk

Alibaba (BABA) edges higher after Jack Ma returns to China for AI talk

BABA shareholders begin the week with a glimmer of hope after founder Jack Ma was seen visiting China after spending more than one year abroad. The report originally led to Alibaba's shares in Hong Kong rising 4% before subsiding.

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Signatures


AUD/USD, THE “AUSSIE”

The AUD/USD pair, the “Aussie”, tells the trader how many US dollars (the quote currency) are needed to purchase one Australian dollar (the base currency). The AUD is a commodity currency whose country's exports are largely comprised of raw materials (precious metals, oil, agriculture, etc.).

The interest rates set by the Reserve Bank of Australia (RBA) have been among the highest of industrialized countries and the relatively high liquidity of the AUD has made it an attractive tool for carry traders looking for a currency with the highest yields.


AUD/USD CORRELATIONS

Australia is a big exporter to China and its economy and currency reflect any change in the situation in that country. The Australian Dollar is known by its greater exposure to Asian economies. Also, the pair AUD/USD often rises and falls along with the price of gold. In the financial world, gold is viewed as a safe haven against inflation and it is one of the most traded commodities.


FORECAST FOR 2023

The Australian Dollar is facing headwinds yet again against the US Dollar, as the central bank divergence theme is back in play in early 2023.

The US Federal Reserve (Fed) is expected to deliver further rate increases than previously expected while the Reserve Bank of Australia (RBA) is nearing the end of its tightening cycle.


ASSETS THAT INFLUENCE AUD/USD THE MOST

  • Currencies: NZD and JPY. This group also includes EUR/USD, GBP/USD, USD/JPY, USD/CHF, NZD/USD, USD/CAD, GBP/JPY and EUR/JPY
  • Commodities: Gold, Iron Ore and Natural Gas.
  • Bonds: GACGB10 (Australian Government Bonds Generic Yield 10 Year), GNZGB10 (New Zealand Government Bond 10 Year) and T-NOTE 10Y (10 year United States Treasury note).
  • Indices: S&P/ASX 200 (stocks of the Australian Securities Exchange), S&P/TSX Global Gold Index (producers of gold and related products at the Toronto Stock Exchange).

ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE AUD/USD

The organizations and people that affect the most the moves of the AUD/USD pair are:

  • Reserve Bank of Australia (RBA) that issues statements and decides on the interest rates of the country. Its president is Philip Lowe.
  • Australian Government and its Department of Finance that implement policies that affect the economy of the country.
  • The US Government (and its President Joe Biden): events as administration statements, new laws and regulations or fiscal policy can increase or decrease the value of the US Dollar and the currencies traded against it, in this case the Australian Dollar.
  • Fed, the Federal Reserve of the United States whose president is Jerome Powell. The Fed controls the monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.

In terms of economic data, as for most currencies, the AUD/USD traders have to keep an eye on:

  • GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the AUD, while a low reading is negative.
  • Inflation measured by key indicators as the CPI (Consumer Price Index) and the PPI (Production Price Index), which reflect changes in purchasing trends.
  • Current Trade Balance, a balance between exports and imports of total goods and services. A positive value shows a trade surplus, while a negative value shows a trade deficit. If a steady demand in exchange for AUD exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the AUD.