Friday, December 23, 2011

Trading AUD/USD currency pair.


Rate of the AUD/USD is comprised of the AUD (Australian Dollar) as the 'base' currency, while the USD (US Dollar) as the 'counter' or 'quote' currency. Trading this currency pair is also known as trading the 'Aussie'. The AUD/USD exchange rate is in fact a comparison of the value of one currency in relation to the other. For exemplar, the quotation AUD/USD 0.95 means that one Australian dollar is exchanged for 0.95 US dollar (95 cents). If the forex rate increased to 0.98, this would reveal a strengthening Australian dollar as compared with the US dollar. You would buy, if you estimated that the Australian dollar would carry on to strengthening against the US dollar.

As trading occurs on currency comparison, it is easy to trade AUD/USD in any economic situation. AUD/USD forex trading is preferential as a way to reduce portfolio risk as it provides the facility to profit in increasing and declining markets. In recent times, the AUD/USD exchange rate has been affected by interest rates and commodity prices. On this page you will find information about factors which influence the price of AUD/USD including real-time quotes.

No comments:

Post a Comment