AUD/USD is a currency pair that includes two popular currencies - the Australian dollar and the US dollar. The national currency of Australia is also called the “aussie”. This designation also refers to the AUD/USD pair. Both the US dollar and the Australian dollar belong to the category of highly liquid currencies. The aussie is the world’s fifth most popular currency while the Australian market is the seventh largest market in terms of trading volume. In the AUD/USD pair, the aussie is the base currency and the greenback is the quoted one. Literally, this means how many US dollars can 1 Australian dollar buy. If the AUD/USD exchange rate is rising, the aussie is strengthening. Otherwise, if the exchange rate is falling, it is the US dollar that is strengthening. AUD/USD is considered to be one of the most popular currency pairs that includes the US dollar. The pair’s other important feature is a large trading volume. This is mostly associated with the AUD/USD trading. Firstly, AUD/USD is highly volatile. Commonly, its fluctuations occur within the range of 100 pips per day. However, AUD/USD price movements are relatively smooth. Therefore, novice traders can use the pair for training. Secondly, AUD/USD trading hits its peak during the Asian-Pacific and North American trading sessions and remains flat for the rest of the time. Thirdly, AUD/USD quotes are easy to predict. The thing is that Australia has a stable economy as well as a unique geographic location. Apart from that, the country is considered the largest exporter of commodities in the world. The political situation in the country is also far from conflicts and unexpected upheavals. All this not only increases its liquidity but makes it easier to give forecasts for the currency pair. This makes it the best option for traders who use the news trading strategy. In addition, the most important news for the pair will be the one that shows changes in the value of industrial metals, raw agricultural materials, as well as a simple weather forecast. Weather has a direct effect on the harvest since exports of agricultural products have always been the main source of income in Australia. Notably, a sharp change in the exchange rate of Australia’s national currency happens rarely. The factors that cause fluctuations are usually known and easy to control. Certainly, AUD/USD is the best instrument for beginners who do not want to make too many mistakes and suffer massive losses. The fourth notable feature of the AUD/USD pair is that it offers plenty of investment opportunities. Thus, market players can open large positions on AUD/USD without any risks. Moreover, traders often use it to store their assets. All this is thanks to the fact that speculative moods are uncommon for the pair. Still, if something like this happens, it does not last long. Lastly, the pair has a positive correlation with gold. This literally means that when gold goes up, AUD/USD rises. When gold goes down, so does AUD/USD. Therefore, it is recommended that traders carefully monitor news on the commodity market. It has already been mentioned that the main and most effective strategy for trading the AUD/USD pair is the news trading strategy. The EUR/GBP pair is one of the most traded pairs in the forex market. It measures how many pounds are needed to buy one euro. Thus, the euro becomes the base currency in the pair, while the pound sterling is the quoted one. The EUR/GBP pair is rightfully considered one of the least volatile trading instruments, which is its first main feature. The rapid change in the trend is not typical for this pair, which gives traders more time to assess the situation and make a thoughtful decision. If we look at the charts of the pair's movement, we can notice that intraday changes in its rate often do not exceed a few pips. On weekly charts, EUR/GBP sometimes can fluctuate within 10-20 pips. The biggest daily gain of the pair can be 100 pips, but such cases are extremely rare and it does not happen every year. Given the low volatility, the EUR/GBP pair is a perfect trading instrument for novice investors, as well as for those who refrain from high-risk trading. Thanks to the minor fluctuations in the exchange rate, the EUR/GBP pair may bring a solid income to traders. This is the second major feature that usually attracts beginning traders to this pair. Curiously enough, most often forecasts about the fall in the pair turn out to be true, whereas economists' predictions about the possible rally are hardly ever confirmed. Inexperienced market players should take this fact into account as the risk of losses even from a slight dip is also high. The third feature of EUR/GBP is its high liquidity observed only during the trading session of Western European countries. In other sessions, its trading volume is quite low. So is the liquidity. The lowest level of liquidity occurs during the trading session of the Asia-Pacific region. This is why the EUR/GBP pair is very appealing to European traders. Therefore, it has become more popular among them compared to their American and Asian counterparts. Moreover, both currencies in the pair are related to the euro region, which also justifies the greater interest from European traders. This pair is much easier for them to deal with as all the news that affects its trajectory is somehow connected to Europe. However, occasionally, some releases from the US can also be the reason for its oscillation. When making the forecast for the EUR/GBP pair, analysts take notice of the main economic news from the eurozone and the UK. They closely monitor the meetings of the main central banks and the speeches of the UK and EU officials. As a rule, these factors have a profound impact on the dynamics of the pair. Apart from that, analysts keep close tabs on the ECB interest rates, consumer indices of the EU and the UK, economic growth indicators, and data from the labor market.
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