Key Peculiarities of Investing in AUD USD Currency Pair

Official stats affirm that over ten million dealers nowadays trade in the forex market. And this number permanently grows. Experts explain this trend through the fact that FX investing is an incredibly profitable business. However, specialists advise following specific trading rules to get income. For instance, selecting a proper currency pair (or CP) is necessary to succeed. Here, AUD USD would be a perfect choice.

AUD/USD pair

The specified CP suits both experienced traders as well as novice investors. That’s because it’s quite easy to analyze the mentioned currency couple. Also, AUD USD is among the five most popular pairs in the forex market. So, there’s much information about this CP on the internet. However, experts recommend trading the described currency pair only through reputable brokerage platforms (such as This is due to unchecked brokers frequently proposing low-quality services. And that’s fraught with money losses.

Why Is AUD USD CP a Great Choice for Trading?

AUD/USD currency trading pair


Initially, let’s dive into the main Australian economy features. This country was among the 14 states with the highest GDP and 25th by the value of its exports worldwide. The Australian economy depends quite little on wars as well as different hefty world crises. Therefore, the Aussie dollar is quite a stable currency.

What Else Should Be Known About Australia in Terms of Forex Trading?

The central bank of this country (RBA) is a pretty conservative institution. So, seriously cares about inflation growth and strives to maintain relatively huge interest rates. Nay, it’s worth noting the next Australian peculiarities:

  1. The AUD rate essentially depends on natural resources and commodities. So, this currency may occasionally be quite volatile. And that’s a perfect option for investors who make short-term forex deals.
  2. The state is located far from unstable regions. Furthermore, Aussie authorities enjoy a high degree of trust among citizens. Thus, there is a low risk of major protests or revolutions emerging.
  3. Recently, China has been an increasing competitor to Australia. But still, AUD is a preferred asset for Asian investors. That’s mainly because Australia has a more advantageous geopolitical position.

Currently, Aussies actively trade with Asian countries that have the most actively developing economies (such as Taiwan or South Korea). That’s due to Australia having large reserves of natural resources (for example, diamonds, oil, iron ore, gold, uranium, coal, and nickel). Additionally, Aussie agricultural products are in high demand abroad.

What Do FX Traders Need to Know About AUD?



The Aussie dollar intensively competed with the USD from 2000 to 2008. The AUD was so strong that the exchange rate of this CP was 1:1. But it all ended in 2008 when the global crisis shook the world. So, the Australian currency depreciated almost two times against the USD after the slump began.

The situation was normalized by 2011. During that period, traders could purchase one AUD for 1.1 US dollars. But in late 2013, the Australian national currency became cheaper than the USD. After this, AUD had been falling for several years. However, there were pretty deep upward corrections during that period.

In 2020, the Aussie dollar had the lowest rate for the previous 20 years. That was related to the unstable epidemiological situation worldwide and natural disasters inside the country. The AUD is currently being restored, though. Thus, experts expect a strengthening of the Australian currency against the USD in the next few years.

What Factors Affect AUD USD CP

As was mentioned earlier, the specified currency couple significantly depends on the demand for raw materials. However, fundamental factors also affect this pair. Thus, the primary parameters that the AUD USD CP rate depends on are:

  1. Australian and the US macro- together with microeconomic indicators. This involves the inflation rate, GDP, the balance of payments, interest rate, etc. Moreover, the described CP depends on the success of large companies in export branches.
  2. Climatic and weather changes. These factors affect raw materials production. For instance, there were large-scale fires in Australia during 2019-2020. That led to the AUD drawdown.
  3. Geopolitical situation. This parameter is not so essential. The factor defines industrial and consumer demand for Aussie exported natural resources. Furthermore, trading partners’ economies’ state influences the AUD USD rate.

Nay, the described pair depends on US domestic politics. For example, the American policy of quantitative easing led to avoiding deflation, and in 2022, FED obtained the possibility to increase the interest rate. This made USD more attractive for investors. Consequently, the AUD rate lowered. Traders may find more detail on this topic in thematic blogs (e.g., on the FBS official website).

Main Benefits of the AUD USD Currency Pair

AUD currency


This CP stands out for its quite predictable exchange rate. That’s because the described currency couple has few affecting parameters. The other advantages are:

  1. Weak susceptibility to geopolitical crises – that was mentioned earlier but let’s dive deeper into it. So, China, Russia, the Middle East, as well as Europe are permanently involved in trade wars. And economic disputes among those countries hugely impact their national currencies. As a result, the latter has short-term exchange rate movements. On the other hand, Australia doesn’t participate in any conflicts. Thus, the AUD rate has no regular short-term movements.
  2. Versatility – as was mentioned earlier, the Aussie dollar may sometimes be quite volatile. It makes the Aussie currency a good option for intraday dealers. But simultaneously, the volatility of the Australian dollar isn’t systemic. That’s why the AUD USD CP is also a good choice for medium and long-term investments.
  3. Possibility to apply a variety of trading strategies – this includes news, trend, channel, and other investing tactics. Moreover, dealers may employ different analytics types such as wave, graphical, trend, or volume spread analysis when trading AUD USD currency pair.
  4. High liquidity – this gives investors less slippage, ease of trade, lower costs, and deeper market depth. The latter buffers against external shocks.
  5. Tight spreads – as a popular CP, AUD USD may have a relatively narrow spread for retail dealers. This can decrease the overall trading cost. And the latter is frequently an essential factor when choosing a currency pair.

Theoretically, the described CP may be traded round-the-clock. However, experts recommend making deals from 19:00 to 4:30 (GMT). This period covers Asia-Pacific sessions’ mid-point and late US trading hours. Good luck!


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