| Updated: January 10, 2025Looking to trade AUD/USD but have no idea where to start? Our expert guide introduces you to all there is to know about the popular commodity pair. You will learn how to trade the Australian dollar against the US dollar and increase your chances of engaging in successful currency trading.
Below you can find a list with the best Forex brokers for AUD/USD trading:
Top 8 AUD/USD Forex Trading Brokers
-
Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
-
Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
-
Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
-
Admirals
- Trade using MetaTrader 4 and 5, as well as Admirals' specialized plugins for additional functionality.
- Access forex, shares, indices, commodities, ETFs, bonds, and cryptocurrency CFDs.
- Admirals is overseen by top-tier regulatory bodies: FCA, ASIC, CySEC, and EFSA, assuring transparency and customer security.
Trading Instruments- CFDs on Forex
- Indices
- Stocks
- Commodities
- Bonds
- ETFs
- Cryptocurrencies
-
Vantage FX
- Broker offering some of the lowest spreads from 0.0 pips
- Operating in multiple markets under licenses from tier-1 regulators
- Provides a range of account types with great trading conditions
Trading Instruments- Forex
- Indices
- Commodities
- Shares CFD
- ETFs
- Bonds
-
XM Group
- XM provides great trading experiences using MetaTrader 4 and MetaTrader 5, which are improved by personalized features.
- Zero commission accounts are available
- Top-tier regulation from CySEC, ASIC, FSC, and DFSA oversee XM's operations, assuring transparency and client safety.
Trading Instruments- Forex
- Stocks
- Indices
- Commodities
- Thematic Indices
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| Global Prime | 0.96 avg (Standard) | $0 Standard Accounts; $7 round turn on Raw Accounts |
| Pepperstone | 1.00 (min) | $0 (Standard Account), $7 round-turn (Razor Account) |
| Axi | 1.2 | $0 on Standard Account; $7 round trip on Pro Account |
| Eightcap | 1.00 (min) | $0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts |
| BlackBull Markets | 0.1 | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| Plus500 | 1.2 | $0 |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| Global Prime | |
$0 |
| Pepperstone | |
$0 |
| Axi |  |
$0 |
| Eightcap | |
$100 |
| BlackBull Markets | |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| Plus500 | |
$100 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| FP Markets | |
1:30 |
| Global Prime | |
1:500 (1:30 for ASIC entity) |
| Pepperstone | |
1:30 |
| Axi | |
1:30 |
| Eightcap | |
1:30 |
| BlackBull Markets | |
1:500 |
| Plus500 | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| FP Markets | |
70+ |
| Global Prime | |
56 |
| Pepperstone | |
90+ |
| Axi | |
80 |
| Eightcap | |
50+ |
| BlackBull Markets | |
70+ |
| Plus500 | |
60+ |
Comprehensive Comparison of the Best AUD/USD Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 |
|
0.96 avg (Standard) |
|
|
 |
$0 |
|
1.00 (min) |
|
|
 |
$0 |
|
1.2 |
|
|
 |
$100 |
|
1.00 (min) |
|
|
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
0.1 |
|
|
 |
$100 |
|
1.2 |
The AUD/USD is one of the most popular and widely traded currency pairs in the foreign exchange market, offering high liquidity and volatility. With the right broker and trading strategy, you can capitalize on the pair’s price movements and achieve your trading goals. This article provides an overview of the AUD/USD pair, its history, commonly available leverage rates, and more.
History and Importance of the AUD/USD Pair
The AUD/USD, also known as the Aussie, is a popular currency pair that consists of the Australian dollar (AUD) and the US dollar (USD). The pair has a rich history, dating back to the early 20th century when the Australian dollar was first introduced. Over the years, the AUD/USD has become one of the most widely traded pairs in the foreign exchange market, accounting for a significant portion of its daily trading volume.
- Why Is AUD/USD Important?
The pair’s importance stems from the strong economic ties between Australia and the US, as well as the significant trade relationship between these two economically developed countries.The AUD/USD is considered a major currency pair, and its price is influenced by a range of factors, including economic indicators, supply and demand, interest rates, and geopolitical events.
- AUD/USD as a Commodity Pair
The AUD/USD is also frequently called a ‘commodity pair’ because Australia is a significant exporter of commodities such as iron ore, coal, and gold. The country’s economy is also heavily influenced by fluctuations in global commodity prices.
As a result, the value of the Australian dollar is closely tied to the prices of these commodities, making the AUD/USD pair sensitive to changes in commodity markets and global economic trends. The pair’s history and importance make it a popular choice among traders, who seek to capitalize on the pair’s volatility and liquidity.
AUD/USD Pair Trading Explained in Brief
Trading the AUD/USD pair involves buying or selling the Australian dollar against the US dollar. The pair is traded on the foreign exchange market, where market participants can buy or sell it in hopes of making a profit. Price quotes for AUD/USD indicate how many units in the quote currency (USD) you need to purchase a single unit in the base currency (AUD).
To trade the AUD/USD pair, you must understand the basics of forex trading, including the concepts of bid and ask spreads, leverage, and risk management. Traders can use various strategies like performing technical and fundamental analysis, to predict the pair’s price movements and make informed decisions.
xample of Trading the AUD/USD Pair
Let’s consider a concrete example to better illustrate how trading the AUD/USD pair works. Suppose a person believes that the Australian dollar will appreciate against the US dollar due to a strong economic outlook. In this case, they will purchase AUD with USD. The person decides to open a long position in the AUD/USD pair at a quoted price of 0.62, hoping to sell it at a higher price later.
This would mean the trader must pay 0.62 US dollars to buy one Australian dollar. If the pair’s value appreciates to 0.68, for example, the trader can sell it and make a profit. However, if the pair’s price falls to 0.60 or lower, the trader will ultimately suffer a loss. The trader can also use a short position, where they sell the pair in hopes of buying it back at a lower price later.
actors Affecting the AUD/USD Pair
Like all currency pairs, the Aussie is affected by a range of factors that constantly drive its prices up and down. Some of the most decisive factors influencing the value of this major pair include economic indicators, interest rates, geopolitical events, and current market sentiments. We briefly elaborate on each of these below.
- Interest rates: Changes in interest rates in Australia and the US can affect the pair’s price. Higher interest rates in the Land Down Under can attract foreign investors, causing the Australian dollar to appreciate against the USD.
- Economic indicators: Economic indicators such as GDP, inflation, and employment rates can also affect the pair’s price. Australia’s strong economic performance can cause the Australian dollar to increase in value against the US dollar.
- Geopolitical events: Geopolitical events like trade wars and upcoming presidential elections also have an impact on the Aussie. Uncertainty and instability can cause dramatic fluctuations in the pair’s value.
- Market sentiments: Investor attitudes and expectations also affect AUD/USD prices as they influence the demand and supply levels of the pair. Positive sentiments towards the Australian economy or the commodities market often lead to appreciation of the AUD against the USD, and vice versa.
Trading AUD/USD with a Leverage
Trading the AUD/USD pair with leverage can amplify your potential gains, but it also increases your risk of losses. Leverage allows traders to control a larger position with a smaller amount of capital by using additional funds borrowed from their brokers. This can considerably boost your losses if the market moves against you.
In accordance with EU and Aussie regulatory requirements, the maximum leverage for major pairs like AUD/USD is capped at 1:30 for retail customers. This means they can gain exposure to $30 for every dollar they invest. A deposit of $100 would enable them to open a position of $3,000 in the pair.
A person who uses this leverage ratio to buy the AUD/USD at a price of 0.62 may incur a loss of 30 times their initial investment if the pair’s price falls to 0.60. However, if the price rises to 0.68, the trader can make a profit of 30 times the initial deposit.
Leverage limits are in place to protect retail traders from excessive risk and ensure that they are not over-exposing themselves to market volatility. Regulated brokers also offer negative balance protection to mitigate the risk of losing more than your original deposit. Professional traders typically have access to higher maximum leverage for this pair, with the ratios reaching 1:500 in some cases.
Benefits and Drawbacks Associated with Trading AUD/USD Pair
Trading on the AUD/USD pair offers several benefits, including high liquidity, volatility, and the potential for significant gains. However, it also involves significant risks, including the potential for losses, market volatility, and leverage risks. We outline some of the key benefits and drawbacks of trading the AUD/USD pair below.
Main Benefits of Trading AUD/USD
- High liquidity: The AUD/USD is one of the most liquid pairs in the foreign exchange market, making it easy to buy and sell larger quantities of these currencies.
- Volatility: The pair’s high volatility makes it a popular choice among traders, who seek to capitalize on its price movements.
- Potential for significant gains: The AUD/USD pair has the potential for significant gains, especially for traders who use leverage and trade on margin. Major pairs like this one typically boast some of the highest leverage ratios retail traders can access.
Main Drawbacks of Trading AUD/USD
- Potential for losses: The pair’s high volatility can be a double-edged sword, especially when combined with higher leverage, making it possible for traders to suffer considerable losses if the market moves against them.
- Unpredictable price movements due to market volatility: The AUD/USD pair is affected by many different factors, including economic indicators, interest rates, and geopolitical events. These can cause the pair’s price to fluctuate rapidly and unexpectedly, increasing the risks of ending up on the wrong side of the market.
- Sensitivity to commodities prices: The Australian dollar is heavily influenced by commodity prices and global economic growth, making the pair highly sensitive to changes in market sentiment and risk appetite.
FAQs
Which technical indicators are most suitable for analysing the AUD/USD?
Some of the most effective indicators for this purpose include the Relative Strength Index (RSI), which helps identify overbought and oversold conditions, and the Moving Average Convergence Divergence (MACD), which provides insight into the pair’s momentum and potential trend reversals.
Which currency pairs have a negative and positive correlation with the AUD/USD?
The AUD/USD has a positive correlation with other commodity pairs like NZD/USD, AUD/NZD, and AUD/CAD, meaning they tend to move in the same direction. It has a negative correlation with safe-haven pairs like the USD/JPY, USD/CHF, and EUR/USD as their prices tend to move in the opposite direction.
What are the average spreads for AUD/USD?
The average spreads for AUD/USD can vary depending on the broker and market conditions, but typically range from 0.5 to 2.0 pips, with some top-tier brokers offering spreads as low as 0.1 to 0.5 pips during peak trading hours. It is not uncommon for spreads to widen to 3 to 5 pips during times of high market volatility or low liquidity.
When is it optimal to trade the AUD/USD?
The AUD/USD pair is most actively traded during the Asian and early European sessions, when the markets in Australia, Japan, and China are open. The period between 7:00 pm and 4:00 am EST tends to offer the most favorable trading conditions, with high liquidity and moderate volatility. Trading during this time can provide valuable opportunities to capitalize on the pair’s price movements, which are often driven by economic data releases and market news from the Asia-Pacific region.
Which strategies are the most popular among AUD/USD traders?
Popular strategies for this pair include trend and day trading, although other short-term approaches like scalping are also commonly implemented. It is important to choose a strategy that best corresponds to your lifestyle, risk appetite, trading goals, and budget.
Conclusion
To summarize, the AUD/USD is a popular and widely traded pair in the foreign exchange market. Its history, importance, and unique characteristics make it a popular choice among traders, who seek to capitalize on its volatility and liquidity. However, trading on the AUD/USD pair involves some risks, including the potential for losses due to leverage and market volatility.
By understanding the factors that affect the pair and using risk management strategies, traders can minimize their losses and maximize their gains. However, it is essential to choose a reliable forex broker, who offers competitive spreads and trading conditions to trade the pair successfully.
Why Should You Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.