The 1 AUD to USD market rate fluctuates everyday. For the most part, the United States Dollar is a stronger currency than the Australian Dollar. Currently, it is trading around 1 AUD = 0.74 USD. This rate impacts international corporations, business owners and most of all, currency traders. Taking a closer look at the AUD/USD combination, we will reveal some of the top bootstrapping factors that impact your forecasting models.
AIG Manufacturing Index
The Australian Industry Group publishes economic factors like the manufacturing index. The index lends insight to the manufacturing in the country. If manufacturing shows expansion, investors may take this as a positive sign for the Aussie. They will use their online trading accounts to create new positions in the Australian dollar. Of course, this metric can indicate a shift in the economy, impacting currency rates against the US.
Commodity Prices In Both Countries
The Australian and US commodity prices are popular forecasting metrics for rfp response. Forex traders use them to evaluate financial strength, individual purchasing power and general economic signaling. Undoubtedly, commodity irregularities or changes can have a major impact on either the Aussie or US dollar. Considering this impact, currency investors take these prices into careful consideration.
RBA Monetary Policy Statement
Just like the Federal Reserve Bank in the United States, the Reserve Bank of Australia has tremendous influence on currency valuation. Base on their statements, the Australian to US dollar rate can change either way. To speculate, investors can make predictions based on the most recent statements. If you wan to make similar speculations, it could help to enroll in one of the best executive MBA programs. Of course, it would be helpful to put the statements into context with the other market rate factors.
Australia To US Trade Balance Comparison
Using the two nations’ trade balance, forex investors can forecast based on their positive or negative trends. For example, some traders may infer that a smaller deficit in Australia combined with a higher deficit in US might lead to an eventual increase in Aussie value. Of course, the countries’ trade balance shows economic trends that any foreign currency expert would consider carefully.
US Dollar Sell Off
As in any currency pair, if there is a sell off of either currency, the rate will increase or decrease. If there is a USD sell off, then the AUD value will likely strengthen in comparison. To traders, this event could indicate a bullish or bearish outlook for the currencies. Furthermore, some experience traders will attempt to predict sell offs using historical data and other factors mentioned above. Almost always, a major currency sell off will change the AUD to USD exchange rate no matter whether you are a commodity broker or a regular NASDAQ investor.
Where To Stay Up To Date
If you want to stay current on the AUD to USD fluctuations in real time, Google has a tool for that, just as they do for everything else. Google Finance can give you a summary of AUD performance, as well as any other currency, by month, year or more. In addition, you can easily access all relevant AUD to USD news right on the same page. This will contribute to all the currency factors while improving your overall business acumen training. If you are familiar with Forex and want to keep abreast of all the changes from 1 AUD to USD in real time, use Google Finance.
Reading AUD to USD Charts
Additionally, you can make your own forecasts about the AUD to USD exchange rate by looking at the previous daily prices. Going as far back as a year, you can see that the lowest value of AUD compared to USD is 0.81. Meanwhile, the highest AUD value against the dollar was 0.73 which was pretty recent. Although past history is not an indicator of what can happen in the future, reading AUD to USD charts can give you some context to how the currency fluctuations have been occurring. Then, you can take that data an compare it to the AUD rates table as well as the USD rates table.
Overall, investing in foreign currencies require immense speculation. Depending on currency prices, your investment can be depreciated very quickly. To ensure profits, investors must do immense research to forecast the currency rates against each other. Using these factors, market trends and historical data combined, investors make forecasts to trade either 1 AUD to USD or visa versa.