Trading global currency pairs like AUD/USD can open up investment opportunities that are not available in domestic markets.

AUD/USD stands for the Australian Dollar and U.S. Dollar currency pair. The AUD/USD forex pair quotes how many U.S. Dollars can be bought with $1 Australian Dollar – for example, if the currency pair is trading at 0.76 it means that 1 x Australian Dollar is worth 0.76 U.S. Dollars (or cents in this case).

Trading the AUD/USD currency pair is commonly known as “trading the Aussie“.

Trading the AUD/USD Forex Pair 

Trading the Aussie has become a hugely popular trading instrument in recent years – in fact, the AUD/USD is the fourth most-traded currency pair in the world making it one of the world’s most traded markets – across all asset classes. Australia is one of the largest exporters of coal and iron ire in the world, and because of this, its currency ($ AUD) is considered a “commodity currency”. This simply means that the strength (or weakness) of the Australian Dollar is heavily dependent on the global price of commodities and the demand for commodities.

When you open the TradeDirect365 trading platform, you will notice the AUD/USD FX pair under FX > USDxxx.  AUD/USD is one of our most actively-traded instruments, particularity for Australian-based traders. One of the standout benefits of trading AUD/USD with TD365 is our 24/5 fixed 0.8 pip spread on this market, meaning you know how much you’re going to be charged every time you open a trade with us. Furthermore, we do not charge commission on FX trades, making it a great way to take advantage of movements on the AUD/USD, all at a low cost.

Volatility of the AUD/USD

As one of the most popularly-traded currency pairs going around, AUD/USD is renowned for its volatility. However, because of its extreme volatility, it’s not an ideal market for beginner’s to trade or those who prefer much lower-risk investments. Put simply, it’s not for the faint-hearted! That said, for more-experienced traders who are comfortable with volatile markets, it’s an ideal instrument to trade given its history of unexpected and dramatic movements throughout the day (and night).

The price of the AUD/USD currency pair fluctuates for many reasons, but here are two key factors;

AUD/USD is a Commodity Currency Pair

As mentioned above, Australia is considered a commodity currency and that’s because its one of (if not) the world’s largest exporters of iron, coal, copper, nickel and other commodities. As a result, the health of Australia’s economy and the Australian Dollar are heavily linked to the global price and demand of commodities, i.e. if commodity prices weaken, so does the strength of the Aussie Dollar and vice versa.

The Australian Dollar is Closely Linked to China

When China roars so does Australia

The Australian Dollar (and economy) is exceptionally sensitive to changes in the Chinese economy as China is Australia’s biggest export market. When the Chinese economy is growing, it usually demands more Australian commodities (and other exports) so it can build more infrastructure etc. and this increase in demand will naturally strengthen the Aussie Dollar. On the flip side, when the Chinese economy slows, they have less demand for Australian commodities & other products, and this will cause the Australian dollar to weaken (and therefore, decrease the value of (AUD/USD).

The Advantages of Trading AUD/USD with TD365

  • Tight, Fixed spreads: trade the AUD/USD with a fixed spread of  0.8 pips at all times
  • No Commission: we do not charge commissions on AUD/USD trades
  • We are ASIC-Regulated: TD365 is a trading name of Finsa Pty Limited (ACN 158 065 635 and AFSL No. 422661)
  • Simple-To-Use Trading Platform: our trading platform is fast and efficient – Find out more about our trading platforms here.
  • Low Cost Trading: we are one of Australia’s lowest-cost CFD providers
  • GSLO: you can trade with a guaranteed stop-loss order, providing you with excellent risk management.

AUD-USD Trading Specifications with TradeDirect365 

  • Trading hours: opens Sunday 22.05 to Friday 22.00 Tradedirect365 Trading App
  • Spread: 0.8 pips at all times (fixed spread)
  • Margin Factor: 0.50% (Leverage of 200:1)
  • Expiry date: Rolling market
  • Trade Per: 0.0001 point movement
  • Guaranteed Stop-Losses Allowed: Yes
  • Guaranteed Stop-Loss Charge: USD $3