The AUD/USD currency combination has become increasingly popular with traders in recent years. For 10 years, the Central Bank of Australia maintains a high-interest rate, which makes it possible for long-term investments and deposits, as well as to make carry-trade transactions.
Thanks to Australia’s multi-decade commodity boom, this pair now marries two exponentially large and financially important economies, helping it to secure a place on the books of investors.
Australia's main export earnings are in gold and silver, so AUD/USD is considered the most commodity pair in the Asian region and has a good correlation with the numerous instruments, such as gold and silver. This allows you to use it as a tool for additional hedging of opening deals on other currency instruments.
One of the pair’s major draws is the interest differential between the two currencies, which makes it an ideal prospect for traders to go long and profit from rollovers. Ideally suited to the more experienced trader, it is nonetheless popular with everyone from the novice to a professional level.
If you are interested in trading the AUD/USD currency pair, contact FxPro today.