Trading AUD/USD

What is AUD/USD?

AUD/USD is closely tied to commodity markets, particularly iron ore and gold. Australia's economic fortunes are heavily linked to Chinese demand, making this pair a proxy for global growth sentiment.

Nickname: Aussie | Trading Hours: 24/5 (peak: Asian-London overlap)

Key Price Drivers

Understanding what moves AUD/USD is essential for developing effective trading strategies:

• RBA monetary policy and interest rates
• Chinese economic data and commodity demand
• Iron ore and commodity prices
• Risk-on/risk-off sentiment

Who Should Trade AUD/USD?

How to Trade AUD/USD with a Broker

Most retail traders access AUD/USD through CFDs (Contracts for Difference), which let you speculate on price movements without owning the underlying asset. Here's what to look for:

1. Tight Spreads: Lower spreads reduce your trading costs on every position
2. Fast Execution: Critical for short-term strategies and volatile instruments
3. Risk Management Tools: Stop-loss orders, guaranteed stops, and negative balance protection
4. Platform Quality: Advanced charting, technical indicators, and mobile trading
5. Regulation: Always choose a broker regulated by a Tier-1 authority

Trading Strategies

Day Trading

Day trading AUD/USD involves opening and closing positions within the same trading day, capitalising on short-term price movements. Requires fast execution, tight spreads, and understanding of intraday patterns.

Swing Trading

Swing traders hold positions for days to weeks, capturing medium-term trends. This approach requires less screen time and can suit traders with other commitments.

Position Trading

Position traders take longer-term views, holding for weeks to months based on fundamental analysis and major trend identification.