AUD/USD - ratio Australian Dollar and The US dollar.
AUD/USD or aussie, as immigrants called themselves in "Australian" English, the language of immigrants often differed from "native" English by craving for abbreviated versions of the words used. This slang name has migrated to currency pair.
In recent years, the Aussie has become a favorite currency of traders. The commodity boom, which lasted for several decades, contributed to the growth of the Australian dollar, which showed several historical highs against the US dollar. Traders are often attracted by the difference in interest rates between the currencies of this pair. This gave traders the opportunity to make money on the opening long positions on the AUD/USD currency pair, at the same time earning on them on the ascending trend. Recent events are contributing to the trend reversal, which is due to economic difficulties in China, combined with a bear market in metals and many commodities, which have created a more gloomy picture of the future of Australia's financial prospects.
Designation
Just like the US dollar, the "Aussie" has the same symbol designation - $. To avoid confusion, the following variants are common: A$, $AU or AU$. In the thematic literature, in order to separate the concepts, the amounts expressed in Australian dollars are accompanied by an 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 90s it has been produced on special plastic. The dollar replaced the old name "pound", which existed until 1966. Ozzy appeared in free conversion in 1983.
The International Monetary Fund recognizes the Australian dollar as a reserve currency, it accounts for more than 5% of international settlement transactions.
The interest rate of the Bank of Australia relative to 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 Australian Union after the war, performs the functions of financial regulation of monetary policy, monitoring the employment of the population and the business climate, issues banknotes and manages gold and foreign exchange reserves. Since 2012, the bank has been in the "general trend" of reducing interest rates.
Features of the currency pair
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, often the opening causes a surge volatility in a pair on the market Forex. A number of "night trading" strategies are built on this phenomenon, when European currencies are "sleeping", and American ones are not so active anymore. Thanks to the Japanese for hedgers and investors, the Australian stock exchange, as well as the currency, capital inflow and demand are provided.
Other information
The currency dimension is decimal, there are up to five digits after the decimal point, the display accuracy is the exchange rate depends on the selected Broker (0.76747).