AUDUSD is the ticker symbol for Australian Dollar vs United States Dollar. AUDUSD is a Forex CFD. The AUD/USD currency pairing is a representation of the amount of US dollars (USD) that can be bought for every Australian dollar (AUD).
The standard contract size for AUDUSD is 100000 with max lots of 1000 tradeable in 0.01 lot increments.
The AUDUSD currency pair is one of the most traded in the world, and for good reason. The two economies are deeply intertwined, and the pair is highly volatile, providing plenty of opportunities for traders. In this article, we'll take a look at three different trading strategies that can be used when trading AUDUSD.
The first strategy we'll consider is a breakout strategy. This strategy attempts to capitalize on sustained periods of strong momentum by buying or selling at the point at which price breaks out of a defined range. To do this, traders will typically place orders just above or below the key range level. For example, if the price of AUDUSD has been trading between 0.7500 and 0.7600 for some time and breaks out to the upside, a trader may enter a long position at 0.7601. Similarly, if price breaks out to the downside, a trader may enter a short position at 0.7499.
The second strategy we'll look at is a mean reversion strategy. This type of strategy takes advantage of periods when price has moved away from its average value and is susceptible to retracing back towards that average. To trade mean reversion in AUDUSD, traders will often use technical indicators like moving averages or Fibonacci levels to identify areas where price is likely to retrace back to. For example, if price moves sharply higher and then starts to pull back towards a 50-period moving average, a trader may enter a long position at that level in anticipation of further upside.
The last strategy we'll consider is carry trading. This approach seeks to take advantage of interest rate differentials between currencies by holding positions in currencies with higher rates and borrowing in currencies with lower rates. For example, if the interest rate on the Australian dollar is 2% and the interest rate on the US dollar is 1%, a trader could buy AUDUSD and earn an additional 1% per year through rollover interest payments (assuming all other things being equal). Of course, carry trades are not without risk; if market conditions change such that interest rates move against the trader, they could be faced with substantial losses.
These are just three of many possible AUDUSD trading strategies that traders can use. The best approach for any given trader will depend on their individual objectives, risk tolerances, and timeframe horizons. Careful analysis and backtesting of each approach is essential in order to determine which one(s) may be best suited for your needs.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
The minimum trade size for AUDUSD is 0.01
You analyze the AUDUSD pair the same as any other market, by a combination of technical analysis, trend analysis, and any pertinent fundamental analysis or information that is available. You should think of the AUD as the "anti-USD", as if the USD is soft, it generally means that there is a strengthening AUD, and vice versa.
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One Forex point is normally = to 10 unit of base currency. For instance, one Forex point of AUDUSD is = to 10 AUD.
CFD trading is extremely risky. Trading any leveraged product carries significant risk as you have the ability to open positions that are far larger than your account balance.
The Afterprime liquidity mix for the forex market has been specially designed to cater for all forex trading styles. Enjoy trading on AUDUSD with fast speeds and low costs.
Execution From < 1ms
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Trading CFDs and FX is high risk and not suitable for all investors. Losses can exceed your initial investment. Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation, or needs. Our Risk Disclosures and Legal documents should be considered before deciding to enter into any derivative transactions.
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