The Aussie forex chart is a trading graph that displays the movements of the Australian dollar when paired with a matching currency in the forex market. The Aussie forex chart expresses the past performance of AUD currency. It automatically identifies and records AUD prices at a different and specific point in time. This chart has the capacity to portray low, high and average prices of the AUD currency when compared to other currencies. These information helps a forex trader to make accurate decisions on when and when not to buy or sell an Australian dollar.
The Aussie forex chart just like other charts uses technical and fundamental analysis to search the forex market for all forms of AUD currency exchange rate and generates information regarding their fluctuation nature, their conversion rates, their fixed exchange rates and their current price and values.
THE AUSTRALIAN DOLLAR AND ITS INFLUENTIAL FACTORS
The AUD is an abbreviation of Australian dollar which is mostly referred to as the Aussie. The Australian dollar is ranked as the sixth world’s highest traded currency as of the year 2008 which basically accounts to 5 percent trade in forex transactions. The term Aussie distinguishes the Australian dollar from every other dollar in the forex market. The Australian dollar is the dominant currency of the Commonwealth of Australia, Norfolk, island, and Christmas Island. The Australian dollar is mostly influenced by geology, geography and government policies.
Australian geology is known for its wealth in natural recourses which includes gold and oil. The use of these natural resources helps in the buildup of the nation’s economy. This factor is also a major determinant of the AUD currency fluctuations and change in commodity prices. With regards to its geography, its location makes the Australian dollar a popular trading ground for fast-growing nations. The government policy which is attributed to stability in interest rates and monitory policy favors the trade of Aussie.
The AUD CHART
In the Australian dollar chart (Aussie forex chart), the AUD is majorly grouped with a major currency in likes of the USD United States dollar. AUD/USD is a currency pair that stands for the abbreviation for the Australian dollar and the United States dollar. This currency pair states how many US dollar is needed to buy one Australian dollar. In this currency pair, the US dollar is the quote currency while the Australian dollar is the base currency. The value of this currency pair is quoted as 1 dollar per × US dollar which means that if the currency pair is trading at 1.50, it takes 1.50 US dollar to buy 1 Australian dollar.
The Aussie forex chart has the ability to generate and indicate major information regarding the overall performance of the AUD currency including its high volatility rates. The AUD/USD currency pair have the characteristics of working out best using breakout forex trading strategies during market trends due to its high volume of volatility. Using the Aussie forex chart to identify break out strategies, it gives forex traders the ability to monitor support and resistance while waiting for a break of price level with an expectation that once the break occurs, the price will continue to rise which will eventually lead to profit maximization.
ADVANTAGES OF THE AUSSIE FOREX CHART
The Aussie forex chart is a computer-based forex trading tool. This feature allows it to analyze the forex market in terms of the Australian dollar exchange rate and gives vital information to forex traders who in turn use the information to know the exact price at which the AUD can be converted to other currencies. The Aussie forex chart also has a currency indicator that initiates the actual direction of the AUD currency price action.
The Aussie forex chart contains vital historical data information and features that naturally helps a forex trader to have an insight of how the Australian dollar have reacted based on the changes and variation of their exchange rates in the forex market. It gives detailed information on the causes of AUD variation and how they performed in the past. The use of historical data in forex trading can’t be overemphasized. This gives predictable knowledge to forex traders in such a way that they can easily forecast the exact price of the AUD exchange rates.
The Aussie forex chart is also user-friendly in that they contain elements that help a forex trader to understand and interpret the chart. They include a graphical user interface that contains pictures and diagrams that better explains the chart, it is also beginner friendly meaning that a forex trader must not be experienced in other to use it.
In conclusion, the Aussie forex chart contains a lot of statistics that will help a forex trader trade the currency with a better accuracy and success. The chart has fewer mistakes and can be used and interpreted easily.