The AUD/USD exchange rate, often called the "Aussie", reflects how many US Dollars (USD) are needed to buy one Australian Dollar (AUD). This pair is closely tied to commodity prices, particularly iron ore and gold since Australia is a major exporter of raw materials. The exchange rate is influenced by monetary policy set by the Reserve Bank of Australia (RBA) and the Federal Reserve (Fed), as well as China’s economic performance, given Australia’s strong trade relationship with China. When the global risk appetite is high, the Australian Dollar tends to strengthen, whereas, during risk-off periods, investors shift toward the US Dollar, causing AUD/USD to decline.
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AUDUSD FAQs – Your Questions Answered
Why is AUD/USD called the "Aussie"?
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The nickname reflects Australia's currency and its commodity-driven economy, with AUD/USD closely linked to iron ore, coal, gold, and China's growth outlook.
How does China affect AUD/USD?
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China is Australia's largest trading partner. Strong Chinese growth supports commodity demand and AUD strength, while slowdowns typically pressure AUD/USD lower.
What role do commodities play?
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Rising commodity prices boost Australia's trade balance, supporting the AUD. Falling prices weaken the currency. Traders often monitor iron ore and gold in conjunction with AUD/USD.
What are TMGM's AUD/USD trading conditions?
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Spreads start from 0.0 pips on Edge accounts and from 1.0 pips on Classic accounts, with leverage up to 1:30 and fast execution.
When is the best time to trade AUD/USD?
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Liquidity is highest during the Asian session, particularly around the Sydney open, when Australian economic data is released.