Australian Currency Forex Trading Tips
Australian Dollar – Australian or Australian Dollar is one of the 7 most common and most important currencies being traded objects in forex trading transactions.Even if you compare with six currencies of other countries, Australia is not a large country, but the fact that the Australian dollar is quite often the object of the transaction. Since 1982, the Australian dollar has become a currency with free floating.
As with some other currencies, as one of the currencies traded, the Australian dollar also remains controlled by the Australian Central Bank or the Reserve Bank of Australia (RBA). Olhe therefore the use of the Australian dollar in forex transactions will also have certain policies.
Obligations and duties from the RBA that will relate to monetary policy
- Stability of the value of the Australian currency
- Availability of adequate employment
- The prosperity and economic prosperity of the people of Australia.
The RBA has a total foreign exchange reserve of $ 3,397 million with a reserve deposit of $ 3,608 million. Then, is the Australian government the one that intervenes in stabilizing the country’s currency? No, the intervention was not carried out by the Australian government. If you make a transaction with a currency or pair that is related to the AUS dollar then you must make sure some indicators are delivered:
- The Reserve Bank of Australia (RBA) cash rate
- Employment change
- Unemployment rate
- Consumer price index (CPI)
- Producer price index (PPI)
- Gross domestic product (GDP)
- Trade balance
- Commodity prices
- Retail sales
The Economy Behind the Australian Dollar
In the case of GDP measured in US dollars, Australia is a good country in the list of major currencies with the 13th largest economy among developed countries.The wealth of the country’s resources cannot indeed have a positive impact if viewed universally for the country’s economy. Even with the existence of an economic liberalization policy, it will return to the early 1980s. Australia has never been able to successfully develop its domestic manufacturing sector. We recommend that countries that have large current account deficits with high levels of foreign debt.
AUSTRALIAN DOLLAR TRADING TIPS
If you want to trade on the Australian dollar, here are tips that you can pay attention to when trading:
1. Pay attention to the country’s economic conditions
However an economy of a particular country will greatly affect the value of the currency, as well as Australia. Some economic data such as reports on GDP, industrial production, inflation and also trade balances periodically so that they can be freely accessed. This information will often be noted and also noted by investors because it will indirectly affect the exchange rate of a currency.
In addition, there are also other factors that will greatly affect the Australian economy. For example, such as the results of commodities such as grain, metal, harvest, add, retail sales or announcements and other things that will indeed influence the country’s dollar exchange rate. The data is the driving factor of the main Australian currency. Usually if the data has come out then the price will immediately experience movement.
2. Record information that will affect the movement of the Australian dollar based on time
Movement in the value of the Australian currency will not change every time.Therefore it is very important for traders to know information about changes in data or economic conditions and other things. To find out this information, you must know the release time of the news. Usually it will appear every morning at 7.30 WIB, 8.30 WITA, 9.30 WIT in the winter. Whereas in summer it will usually appear at 8.30 WIB, 9.30 WITA, 10.30 WIT.
3. Create a strategy in the event of a carry trade
Carry trade is a trading technique where the trader is very trying to be able to get profits derived from the difference in interest rates that have been obtained when making currency transactions. But not only the difference between the price of buy and sell, carry traders often occur among virtual money with low and high interest rates.
AUD / USD and also AUS / JYP are the most frequent objects of carry traders because there is a difference between Australian vs American and Japanese interest rates which are indeed high compared to other major countries.
AUD or Australian dollar is one currency that is used quite often by carry traders with Japanese yen. This is because Australia’s high interest rates and the dominance of the Australian dollar for ownership assets are considered very attractive to traders. In addition, speculation about currency movements will usually result in disproportionate currency values.
4. Anticipate regional factors that will cause currency changes
Australia is a country that has a fairly stable government system and is also pro-business. Especially in China, the country that is intended for most investors in Southeast Asia who want to plan to move their assets abroad. The policy can certainly have a profound effect on the trading system and also the economic performance of the Australian state. China and the country of India are also one of the main importers in the country’s commodities. So that this country becomes one of the most important importers for several products in other countries. This is very important for you to note because it can have a big impact on your currency and trading activities.
Every currency in a country is no exception Australia certainly has its own characteristics, so that as a trader it is very important for you to know these characteristics in order to be able to run its trading activities properly.