One of the major forex pairs on the global market, AUD to USD – also called the Aussie – has seen its popularity with traders increase in recent years. The reason for this is Australia’s role as one of the world’s most important exporters of commodities such as coal and iron ore. This means the value of the AUD/USD pair is strongly linked to global demand for commodities.
The Aussie is the fourth most traded currency pair based on average daily volume, accounting for 5.2% of forex trades, according to the Bank for International Settlement’s Triennial Central Bank Survey (2016).
For long term prospects, the cyclical nature of the commodities market makes AUD to USD an enticing option. Yet, the differences between the interest rates of the Australian and American economies can make it a very liquid market – presenting short-term trading opportunities too.