AUDUSD

AUDUSD, also written as AUD/USD, is a major currency pair in the foreign exchange market. It represents the value of one Australian dollar expressed in United States dollars. For example, a price of 0.72 means one Australian dollar can be exchanged for 0.72 US dollars. The pair is quoted as USD per AUD, and traders sometimes invert the quote depending on market convention.

The AUDUSD pair is influenced by factors affecting both the Australian economy and the United States economy. Key drivers include interest rate expectations set by the Reserve Bank of Australia (RBA) and the Federal Reserve, commodity prices (Australia's exports include iron ore, coal, and other commodities), and global risk sentiment. A higher RBA rate relative to the Fed tends to support the AUD, while a stronger US dollar weighs on it. Changes in inflation, employment, and GDP data from both countries can move the pair, as can shifts in speculative positioning and risk appetite.

Trading characteristics: The pair is among the most liquid in the forex market and is traded around the clock during weekdays in the over-the-counter market, with liquidity peaking during the overlap of European and US trading sessions. Spreads are typically tight but can widen on news releases or during periods of thin liquidity. Traders use this pair for hedging, carry trades, and directional bets.