CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Past performance or future forecasts does not constitute a reliable indicator of future performance.
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Invest in AUD/USD CFD

The AUD/USD forex pair is a popular currency pair among forex traders that measures the exchange rate between the Australian dollar (AUD) and the US dollar (USD). It represents around 5% of the entire forex market by volume and is informally known as the “Aussie”. This major currency pair is heavily influenced by various economic and political factors, such as interest rate differentials, GDP growth rates, commodity prices, and geopolitical events.

The AUD/USD forex pair tends to have a higher beta, making it more sensitive to changes in equity and commodity prices compared to other currency pairs. Therefore, day traders can often witness high levels of both volume and volatility in the AUD/USD forex pair.

Trading AUD/USD with CFDs can offer several benefits, such as leverage and the ability to trade both long and short positions. However, it's important to keep in mind that CFDs are complex instruments and come with a high risk of losing money quickly due to leverage. Therefore, it's essential to have a solid trading plan and risk management strategy in place.

AUD/USD trading via contracts for difference (CFDs) is one of the investment options offered by XTB.

When investing in the AUD/USD forex pair, it is important to consider the interest rate differential between the two countries. The Reserve Bank of Australia (RBA) typically sets higher interest rates compared to the US Federal Reserve, which can lead to a carry trade strategy where traders borrow in USD to invest in AUD to gain from the interest rate differential. However, this strategy can also expose traders to significant risks.

In summary, investing in the AUD/USD forex pair requires a good understanding of the economic and political factors that influence the exchange rate between the two currencies. Traders also need to keep a close eye on the prices of gold and copper, as they have a high positive correlation with AUD/USD.

Minimal spread
0.00011
Margin
5%
Leverage
1:20
Commission
-
Market hours
24h from Sunday 11:00 pm to Friday 10:00 pm

Interesting facts

The Gold Influence: The AUD/USD currency pair, colloquially known as the “Aussie”, has a strong correlation with the price of gold. This is primarily because Australia is the world's third-largest gold producer, exporting about $5 billion worth of the precious metal each year. Consequently, when gold prices rise, AUD/USD often experiences a hike. 

Commodity Currency Dynamics: Known as a “commodity currency”, the Australian dollar has a significant correlation with commodity prices. This is because Australia's economic growth and exports are heavily linked to its domestic industries, such as mining. The price movements of these commodities can thus affect the value of AUD/USD.

Role of Gold in Economic Unrest: During periods of economic unrest, investors often dump the US dollar in favour of gold, viewing it as a safe haven. This behaviour reinforces the inverse relationship between the US dollar and gold, often leading to a rise in the AUD/USD pair as the value of USD falls and the AUD rises in relation to it.

Australia's Influence on Gold Prices: As a major global gold producer, Australia significantly influences gold prices. In turn, these gold prices impact the AUD/USD currency pair, owing to the close correlation. Therefore, developments in Australia's gold industry can have far-reaching effects on this Forex pair.

G10 Currencies Inclusion: AUD is part of the G10 currencies, a group comprising some of the world's most traded currencies. While this group is named after the G10 nations, there isn't an exact match between the two groups due to the use of a single currency (the Euro) by several European Union countries in the G10.

Gold and Fiat Currency Correlation: Gold prices significantly impact the AUD, USD, and CHF currencies, highlighting the important correlation between fiat currency and gold prices. This correlation exists due to gold's scarcity, utility, and desirability.

Correlation Variation Over Time: Despite the historical correlation between gold prices and AUD/USD, this relationship can fluctuate. For instance, the correlation was found to have weakened in 2016 to 40%. Such fluctuations emphasise the dynamic nature of Forex markets and the multiple factors influencing currency pair values.

Utility of Gold: The utility of gold, particularly its desirability for jewellers and artisans worldwide, adds to its steady demand from various sectors, thus influencing the correlation with the AUD/USD pair. Its use as a precious metal in superconductors to gold coins is varied and extensive.

Gold and AUD/USD Pair Trading Strategy: The strong correlation between gold and the AUD/USD pair has given rise to a popular strategy known as 'pair trading'. Here, traders simultaneously buy an asset and sell a related one, leveraging the correlation between the two to balance their risk and returns.

USD and Gold Relationship: The USD holds an inverse relationship with gold prices. Consequently, when the USD moves up, gold usually falls, and vice versa. This dynamic influences the AUD/USD pair since any significant shifts in the USD or gold prices can impact the relative value of AUD to USD.

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Chart of the day - AUDUSD (20.02.2024)

20 February 2024

Daily summary: Chinese indices jump, RBA...

6 February 2024

Chart of the day - AUDUSD (06.02.2024)

6 February 2024
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2. Open an account

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FAQ

Do you have any questions?

AUD/USD is the abbreviation for the Australian dollar and the United States dollar currency pair. It represents how many US dollars (USD) are needed to purchase one Australian dollar (AUD).

 

The AUD/USD exchange rate is an essential factor that affects investments. A strong AUD results in more USD when exchanging, while a weak AUD results in fewer USD. The exchange rate fluctuations against the USD affect the value of investments made in AUD.

 

Several factors influence the AUD/USD exchange rate, including economic indicators, such as inflation, interest rates, and GDP, political stability, trade balances, commodity prices, and global events that impact the respective countries' economies.

 

Yes, investors can trade the AUD/USD forex pair with leverage, allowing them to control a more substantial position with a smaller amount of capital. However, trading with leverage involves a higher risk of losses, and investors should understand the risks and have a risk management strategy.

 

The best time to invest in the AUD/USD forex pair varies depending on several factors, such as the time of day, market volatility, and economic events that affect the exchange rate. Traders can use technical and fundamental analysis to identify potential entry and exit points.

 

It is best to preced trading in FOREX with proper education - you can start with the Knowledge base we have prepared for you. Once you have the proper knowledge you should open a demo account to get a feel for the market and practice your trading strategy before investing real money. Remember that you can never have to much knowledge and you should constantly educate yourself during your presence on the financial markets.

There is no recipe for succes in the FOREX market. However, there are some aspects that will help you become a better trader. Here are some tips: start with demo account (before risking real money - get a feel for the market and practice your trading strategy), develop a trading plan (it's important to have a clear plan in place before starting trading), use risk management tools (manage your risk when trading, through eg. Stop Loss orders), do not overtrade (it's easy to get caught up in the excitement of trading, but it's important to stick to your plan and not overtrade).

Financial markets are a very complex topic, as they are influenced by various factors, such micro- and macroeconomic events, policies or social changes. You should start your trading experience with proper education about the concepts, assumptions and laws that govern the markets - you can start with the Knowledge base we have prepared for you. Once you have the proper knowledge you should open a demo account to get a feel for the market and practice your trading strategy before investing real money. Remember that you can never have to much knowledge and you should constantly educate yourself during your presence on the financial markets.

Yes, FOREX investing can be risky. The value of currencies can fluctuate significantly due to a variety of factors, including economic conditions, political events and market speculation. It is important for individuals to carefully consider their own financial situation and risk tolerance before investing in FOREX.

When choosing a broker, you should consider a number of aspects related to its activity and offer. These things you should definitely consider: credibility of the invesment firm, cost and fees, instruments offered, investment platform, customer support and additional benefits. If you want to learn more about how to choose your broker visit: investresponsibly.com.

When choosing a FOREX platform there are several factors you should consider: platform ownership (proprietary platform are usually designed in the most intuitive way), availability of DEMO account (where you can test your knowledge practice strategies before risking real money), fees (commissions, spreads etc.), access to educational materials and market news. Before commiting to one platform you should carefully consider all above-mentioned aspects, as they will particulary contribute to the effectiveness of your trading.
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