AUD/USD

The AUD/USD, also commonly referred to as “the Aussie”, represents the value of the Australian dollar against the US dollar. This pair takes fourth place among the most popularly traded currency pairs and indicates how much USD you need to buy AUD 1.

The popularity of this currency pair is influenced by the relative strength of the two economies – Australia, one of the biggest suppliers of natural resources and the US, the largest economy in the world. However, the AUD is also considered a riskier currency because of its dependence on commodity prices.

Besides mining and trading conditions of natural resources in Australia that act as the main driver of the AUD/USD price, the pair is also influenced by the following factors:

• Monetary policies of the Reserve Bank of Australia (RAB) and the Fed Reserve of the US, as the difference in interest rates is a second major factor influencing the supply and demand of the AUD.


• The Chinese business environment, as China is the main importer of Australian commodities.


• Speculation, as traders usually anticipate the strengthening of the AUD with the overall strengthening of the stock market.