AUDSGD definition

AUD/SGD is the price of the Australian dollar in Singapore dollars, showing how many Singapore dollars it takes to buy one Australian dollar. It is a regional cross that joins a commodity-linked currency to a tightly managed one, and it trades with moderate liquidity, deepest during the Asia-Pacific session and thinner outside it, so spreads run wider than on the majors.

Here the Australian dollar is the base and the Singapore dollar the quote, meaning a quote of 0.8900 says one Australian dollar is worth 0.8900 Singapore dollars. A higher number shows the Australian dollar strengthening, a lower one shows it weakening. Trading it as a forex CFD lets you back the direction of the rate without owning either currency: buy to profit from a rising Australian dollar, sell to profit from a falling one. Pips are read at the fourth decimal, and what you make or lose is those pips times the size of your position.

The two sides answer to opposite forces. The Australian dollar takes its cue from the Reserve Bank of Australia, Chinese demand and commodity prices such as iron ore, and it tends to rally when investors are in a risk-on mood. The Singapore dollar, by contrast, is held inside a trade-weighted band by the Monetary Authority of Singapore, so it moves more steadily. The cross therefore often comes down to Australian risk appetite playing out against a deliberately stable Singapore dollar.