![]() The x-axis represents the time and date over the week while the y-axis shows us the fluctuations in exchange rates over time. It shows the rise and fall of the AUD against the USD over a period of one week. It’s a line graph which is one of the simplest graphs to read. The graph doesn’t show the stock price movements but an exchange rate. The chart looks pretty similar to a stock chart but it isn’t. The chart below gives an idea of how the AUD has moved compared to the USD over the last week. This is because the difference between the market exchange rate and the bank’s exchange rate is the profit that the bank earns. So, you might require a higher or lower amount of capital each day to convert AUD to USD. However, when you go to a bank, the AUD to USD conversion might be 0.7. Exchange rates are always fluctuating because they are being traded 24/7.Īn AUD/USD currency implies how much USD 1 AUD will get. How is this decided? Basically, the exchange rate is the price of one currency in terms of another currency. For example, if it is 0.74 today, this means 1 AUD is worth 0.74 USD. ![]() The AUD to USD exchange rate changes on a daily basis. So, you can trade the AUD with several currencies including the USD. What is AUD USD? An Overviewįoreign exchange trading takes place via currency pairs. Here, we will study the AUD USD pair, and compare the Australian Dollar with the world’s reserve currency which is the US dollar. India is the 6 th largest economy in the world and South Korea is the 10 th largest one but both their currencies don’t make the Top 10 Most Frequently Traded Currencies in the World. Australia, on the other hand, is the world’s 13 th largest economy but its currency, the Australian Dollar (AUD) is the 5 th most frequently traded one in the world. When investing, your capital is at risk.Just because a country has a large economy doesn’t mean that its currency will be in demand in the forex market. Start trading forex and stocks CFDs today with Plus500 – regulated broker with no commissionsĭisclaimer : The content on this site should not be considered investment advice. Notably, the economists see the overall CPI slipping to 3.3% in October from 3.7% in September, although the core inflation rate is expected to show more resilience. The headline inflation rate in the US for October is projected to show a continued drop in inflation, primarily because of easing energy prices. If it’s strong, then obviously it brings in the idea that another rate hike from the Fed is possible.” – said NAB’s senior FX strategist Rodrigo Catril. “We need to wait for that CPI number tonight, which could be a bit of a shaker. Although the Fed left the rates unchanged at the latest meeting, Powell left the door open for future raises if necessary. Recent statements by the Federal Reserve’s chair Jerome Powell contradicted broader market expectations that the central bank’s aggressive rate-hiking campaign is over. The economic data coming from Australia clearly made an impact on the AUD/USD pair, however, most of the foreign exchange ( forex) market’s attention is focused on the US inflation figures due later on Tuesday. Still, overall price growth declined by 1%, the lowest since mid-2020. Meanwhile, labor cost growth and purchase costs edged lower to a quarterly rate of 1.8%, while the retail price growth rate kept steady at 1.9%. In particular, the survey conducted by the National Australia Bank (NAB) showed its index of business conditions rose 1 point to +13 last month, while confidence fell by 2 points to -2. ![]() While the country’s business conditions remained stable in October, consumer confidence declined after the Reserve Bank of Australia hiked rates last week. The most recent downswing in the Australian dollar comes in the wake of the country’s new economic data, which failed to boost traders’ sentiment.
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