AUD/USD Trading Positions

AUD/USD

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


Important AUD/USD correlations

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. Australia's dependency on commodity (mineral and farm) exports has seen the Australian Dollar rally during global expansion periods and fall when mineral prices slumped, as commodities now account for most of its total exports.


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) and 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 Donald Trump.
  • Fed, the Federal Reserve of the United States whose president is Jerome Powell.

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.
  • 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.


Currency Trading Positions

The purpose of the Trading Positions table is to provide a glance of AUD/USD as to where our dedicated contributors are currently positioned. You can access the original analysis reports by clicking on each position.