What Is AUDUSD and How Is It Related to Commodities?

    AUDUSD is the ticker symbol for the Forex pair Australian Dollar/United States Dollar, one of the major currency pairs as it’s one of the most traded in the world, it ranks as the 4th most liquid currency pair; however it is not included in the basket for the US dollar Index (USDX).

    We cover how this highly traded currency pair is strongly related with commodities in much more detail below.



    What Is AUDUSD?

    A currency pair shows you how much of one currency is required to purchase one unit of another currency.

    The first three letters of the quote represent the abbreviation of the base currency in this case AUD, while the second shows the abbreviation of the terms currency (also known as quote currency since the actual quote is given in this currency) which in this case is USD.

    audusd foreign exchange currency represented with Australian flag and United States Dollar

    How Is AUDUSD Related to Commodities?

    The Australian Dollar is referred to as a commodity currency since it has a heavy dependence on its export of raw materials and natural resources. Australia is one of the richest countries in the world in natural resources.

    The pair AUD/USD is affected by economic factors that influence the value of the Australian Dollar in relation to the United States Dollar and other currencies. 

    These factors are typically related to the production of commodities, economic sentiment, interest rates, and the correlation it has with other forex pairs.

    This pair has a negative correlation with pairs like USD/CAD, USD/JPY and USD/CHF because the pair AUDUSD is quoted in US dollar as the other pairs are quoted in Canadian Dollar, Japanese Yen and Swiss Franc respectively.

    How to Trade AUDUSD?

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