More AUD USD News
AUD/USD – Live and Historical Rates
Both currencies involved in this pair are majors and the AUD/USD is considered a commodity pair. The chart above illustrates the number of US Dollars it takes to purchase one Australian Dollar.
The AUD
Serving as the floating currency of the Australian Commonwealth – which, besides Australia itself, includes seven dependent territories and three countries – the Australian Dollar was introduced in 1966, replacing the Australian Pound. Despite the move, the former colonial link between Britain and Australia was maintained till 1983, when the AUD was taken off the GBP peg. Nowadays, the AUD is one of the most traded currencies in the world (it is actually fifth behind the USD, EUR, JPY and GBP) making up some 7.6% of the daily global forex trading volume.
The AUD is backed by a commodity-based economy, with strong exposure to the Asian markets.
The USD
Controlled by the Federal Reserve, the US Dollar is the most traded currency, as well as the largest reserve currency in the world. Because many countries use it besides the US, the majority of US dollars are actually held outside the United States. As defined by the Coinage Act of 1792, the US dollar is commodity money of silver. Besides the US and its dependent territories, it is used as the official or de-facto national currency by no fewer than 30 countries, 4 non-US territories and 4 non-US cities. In regards to daily FX trading volumes, the dominance of the US dollar is unchallenged. According to recent figures, it accounts for around 88% of the global daily FX turn over.
AUDUSD Analysis
A commodity pair, the AUD/USD is a potentially profitable vehicle for traders well-versed in commodities. The AUD is more exposed to commodity cycles, so it fluctuates more in this regard than the USD. This pair doesn’t lend itself well to carry trading.
See more free forex charts.
