Open trading account Hello, traders!
As you know, most of the traders on Forex, especially beginners, focus only on trade Eurodollarsbut on other pairs pay little attention.Today we talk about the features of the Australian dollar trade. Namely currency pair AUD / USD, which is easier to sell than the same EURUSD, and the movement more effectively.
Despite its youth, the Australian economy is one of the major capitalist economies in the world. GDP is estimated at about 1.57 trillion dollars.
Overall, the Australian economy depends on the prices of resources and on economic indicators. That's all we need to know. Directly behind the currency for its circulation and monetary policy is responsible Reserve Bank of Australia (Resrve Bank of Australia). The interest rate of the Reserve Bank of Australia 2.5% per annum. Therefore, swaps are small and pay attention to them, as the purpose of earnings, and in the sense not to go into some heavy losses at the opening of the long-term position makes no sense.
Like other major currency pairs, the highest activity is observed at the opening of the London session and about the first 3 hours of America. Next comes the decline in activity until the next London session.
Strategies using roughly the same as for the pair EUR/USD. First of all it is a trend-following strategy.
In general, the volatility is distributed within the day. This is a definite plus in the trade this pair. Technically trade easier, as intra-day the volatility is the same.
It should be noted that the most similar motion with AUD/USD AUD/CAD.
Significant correlation observed in pairs with gold, USD/CAD, AUD/CAD, EUR/USD and USD/JPY. If you are using a multi-analysis, then follow these tools in determining the direction of trade on the Australian dollar.
On the daily chart in trading prefer long positions, as a global trend to pair up, but also remember that if you judge the trend since 1919, it will be a 100-year trend downward.
All the best!!!
Anastasiia
Anastasiia