AUD/USD is the ratio of the Australian dollar to the Us dollar.
AUD/USD or Aussie, as immigrants called themselves in "Australian" English, the language of immigrants often differed from "native" English by a craving for abbreviated versions of the words used. This slang name has moved to the currency pair.
In recent years, the Australian has become a favorite currency for traders. The commodity boom that lasted for several decades has helped the Australian dollar to grow, which has shown several historical highs against the US dollar. Traders are often attracted to the difference in interest rates between the currencies of a given pair. This gave traders the opportunity to earn money by opening long positions on the AUD/USD currency pair, while at the same time earning on them on an uptrend. Recent developments are contributing to a reversal of the trend, which is due to economic difficulties in China combined with a bear market for metals and many commodities, which have created a more gloomy picture of the future of Australia's financial prospects.
Just like the US dollar, "Australian" has the same symbol designation - $. To avoid confusion, the following variants are common: A$, $AU, or AU$. In the literature, to separate the concepts, amounts expressed in Australian dollars are accompanied by the icon in front - $100.
Features of the Australian economy and currency
The national currency of Australia is the means of payment of the "Australian Union", which includes the mainland and several island States.since the early 90's, it has been issued on a special plastic. The dollar replaced the old name "pound", which existed before 1966. In free conversion, Ozzy appeared in 1983.
The international monetary Fund recognizes the Australian dollar as a reserve currency, accounting for more than 5% of international settlement transactions.
The Bank of Australia's interest rate relative to the low, zero and negative rates of developed countries attracts speculators with the possibility of a "carry trade". When buying AUD/USD and holding a position for more than one day, the trader is credited with a positive swap.
The reserve Bank of Australia, which replaced the Bank of the Union of Australia after the war, performs the functions of financial regulation of monetary policy, monitoring employment and the business climate, issuing banknotes and managing gold and foreign exchange reserves. Since 2012, the Bank has been in the "General trend" of lowering interest rates.
Currency pair features
The Australian stock exchange is geographically located so that it is the "pioneer" of trading in the Asia-Pacific region, Japanese exchanges open later. Therefore, opening often causes a surge of volatility in the pair on the Forex market. A number of "night trading" strategies are based on this phenomenon, when European currencies are "asleep" and American currencies are not so active. Thanks to Japanese hedgers and investors, the Australian exchange, as well as the currency, capital inflows and demand are provided.
The currency size is decimal, there are up to five digits after the decimal point, and the accuracy of the exchange rate display depends on the selected Broker (0.76747).