![]() ![]() This canĬreate a trade deficit (more imports than exports). Goods and services because their purchasing power will be weaker. It increases imports and diminishes exports because foreigners will buy less On the other hand, when the currency is too strong Too much, the central bank will start to increase interest rates which will A too weakĬurrency though can spell trouble because it may increase inflation and theĬentral bank has a mandate of keeping inflation stable, so if it increases Goods and services from the country that has a weak currency. Stronger currency and more purchasing power leading to them demanding more A weakĬurrency can increase exports and thus growth because foreigners will have a The Federal Reserve is also the most important central bank in the world.Ĭurrency exchange rates are important for the respective countries. Moreover, in the North American session the news for US is released and theyĪre always the most important as the US is the biggest economy in the worldĪnd it can single-handedly spur global growth or bring the whole world intoĪ recession as we saw in the 2008 with the Global Financial Crisis (GFC). Session and can offer good trading opportunities, the movements get extended Volume and even though the news for Australia is released in the APAC This is because in the Asia-Pacific (APAC) Session there’s less The best times to trade AUD/USD is during the European and North American What session is best to trade the AUD/USD? Tends to appreciate against the AUD even if there’s no monetary policyĭivergence between the two central banks. This means that in times of risk aversion in the market, the USD The candlestickĬhart shows you instantly and in real time where the price has opened,Ĭlosed and how much up and down it went on any given timeframe.Īnother thing to remember is that the USD is considered a safe havenĬurrency. The most popular and used one is the candlestick chart. ![]() The most common ways include a line chart or a bar chart, but There are different ways you can display the exchange rate price movements What are common charts to use when trading AUD/USD? The Australian Dollar is also nicknamed “the aussie”. So, when the pair is going up in price, theĪustralian Dollar is said to be appreciating or getting stronger and the USĭollar is depreciating or getting weaker, and vice versa when the pair is ![]() Pair is trading at 0.6300, it means that you need 0.6300 US Dollars to buy This exchange rate tells you how many USĭollars you need to buy one Australian Dollar. The left side of the pair is called the baseĬurrency, in this case the AUD, and the right side is called the quoteĬurrency, in this case the USD. AUD/USD is the currency pair that shows the value of the Australian DollarĪgainst the US Dollar. ![]()
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