What is AUD/USD (Australian dollar - US dollar)?

Note: Low and High figures are for the trading day. AUD/USD (Australian Dollar - US Dollar) is one of the most frequently-traded currency pairs in the world. The AUD/USD rate, as shown in the real-time price chart, tells traders how many US Dollars are needed to buy a single Australian Dollar.

Why does the AUD/USD exchange rate rise?

When global players are confident, they invest money back, and then the AUD exchange rate rises. AUD/USD is heavily influenced by economic and regulation information from China because Australia is a material importer to China and other Asian countries.

Why is the AUD/USD pair a risk asset?

This makes the AUD/USD pair a risk asset. The AUD is a commodity linked currency and therefore it’s very sensitive to global growth expectations, while the USD is a safe haven currency, and it sees inflows in times of risk aversion and stress in the markets.

Is AUD/USD a good currency to trade?

AUD/USD can be a very good pair to trade when you have a monetary policy divergence between the two central banks backing the currencies, the Reserve Bank of Australia (RBA) for the AUD and the Federal Reserve (the Fed) for the USD.