AUD/USD Forex Trading
AUD/USD Live Charts
Use our AUD to USD chart to get the most up-to-date insight into the recent performance of this pair and other currency pairs used in forex trading. It can help you make informed decisions at home or on the go – no matter if you use the TickTrader desktop platform, web terminal, or mobile app. Our real-time chart includes the very latest prices, historical data, and technical analysis tools to help guide your next trade.
What Is AUD/USD Trading?
AUD/USD is a currency pair that represents the value of the Australian dollar to the US dollar. In this pairing, AUD (“Aussie”) is the base currency, and USD (“greenback”) is the quote currency. This means that when trading AUD/USD, you are expressing the value of one Australian dollar in terms of US dollars. Imagine the rate is 0.75; this would mean that when you convert AUD to USD, you would get 0.65 US Dollars. Note that the exchange rate of USD to AUD isn’t the same as the rate of AUD to USD. If the latter is 0.65, the former will be 1.55.
The Aussie/greenback is known for its liquidity and substantial trading volume. It consistently ranks as one of the most actively traded pairs in forex. This liquidity potentially ensures that traders can enter and exit positions even in times of high market volatility.
Moreover, FXOpen offers ultra-fast trade execution and spreads from 0.0 pips, which may allow traders to catch potentially favourable prices.
AUD/USD Historical Performance
These are the pivotal points in the AUD/USD exchange rate since 2010:
The early years of the decade were defined by a remarkable milestone: the Australian dollar achieved parity with the US dollar for the first time in decades. This historic event was propelled by Australia's robust economy and buoyed by strong demand for its commodities, particularly from China. The AUD/USD rate hovered around the 1.0000 mark.
During the period between 2014 and 2015, AUD/USD faced downward pressure as commodity prices continued to weaken. The decline in commodity demand, especially from China, impacted Australia's export-driven economy. The exchange rate slipped below 0.7000.
In 2018-2019, trade tensions between the US and China, coupled with global economic headwinds, influenced the AUD/USD rate. The exchange rate experienced fluctuations and remained sensitive to developments in international trade relations. By the end of 2019, the Aussie plunged below 0.7 against the greenback.
The outbreak of the COVID-19 pandemic in 2020 brought unprecedented market turmoil. Initially, the AUD weakened significantly as investors sought refuge in the greenback during the uncertainty. In March, the price plunged below 0.6. However, fiscal and monetary stimulus measures in both Australia and the US impacted the exchange rate. The AUD/USD rate exhibited fluctuations, reflecting the dynamic nature of the pandemic's economic impact, and it managed to remain above 0.6.
Major Factors That Affect the AUD/USD Rate
Interest Rates and Monetary Policy: Monetary policies of the Reserve Bank of Australia (RBA) and the Federal Reserve (Fed) wield immense influence over AUD/USD. When the RBA raises interest rates or signals a hawkish stance, the Aussie typically strengthens against the USD. Conversely, dovish policies or rate cuts can weaken the Aussie.
Economic Data and Performance: Economic indicators, including GDP growth, employment figures, and inflation, serve as vital markers of economic health. Positive data from Australia can boost confidence in the AUD, while weaker data may lead to depreciation against the USD.
Commodity Prices: Australia's economy is closely tied to commodity exports, particularly iron ore and natural gas. Changes in commodity prices can significantly impact the value of the domestic currency. Rising commodity prices often bolster the Aussie.
Global Risk Sentiment: The Aussie is often viewed as a risk-sensitive asset. During periods of risk-on sentiment, characterised by optimism and a preference for higher-yielding assets, it tends to strengthen. Conversely, risk-off sentiment may lead to USD strength, given its status as a safe-haven asset.
Political and Geopolitical Events: Political developments, trade tensions, and geopolitical conflicts can introduce uncertainty into the market. Events that enhance political stability in Australia or escalate geopolitical tensions can affect the exchange rate.
Global Economic Events: Major global economic events, such as financial crises or recessions, can lead to shifts in investor sentiment and affect the Aussie/greenback.
