How To Trade AUDUSD

The audusd pair is one of the most important major pairs as it represents two of the biggest economies in the world: Australian and American one.

The pair is influenced strongly by what is happening on the commodity markets as Australian is one of the biggest exporters of gold, copper, iron, etc, so looking at how those markets are moving will make you having an educated guess about what the Australian dollar will do.

Also, one thing on the list of those that are making the audusd pair moving is the economic situation and monetary policy in China. This is because China is the destination of more than one third of Australian exports and this means that data regarding GDP, and how the Chinese economy is faring should make the Australian dollar moving.

The RBA (Reserve Bank of Australia) is the central bank and they are meeting on a monthly basis, usually on the first Tuesday of each month. The interest rate decision is followed by a press conference and the Governor is explaining the decisions and the next steps in monetary policy.

The economic events from Australia to watch when you are trading the audusd pair are:

central bank interest rate decision: 1st Tuesday of each month and two days later there is a press conference with the details regarding the reason for the decision taken;
Chinese data like PMI, GDP, any release that allows traders to make an educated guess regarding what the Chinese economy will do next;
commodity prices (gold, copper, iron, oil, etc.);
CPI (consumer price index) as this is inflation and it matters the most when the RBA makes a move on interest rates and monetary policy;
PMI (purchasing manager index) as in Australia is released for Services, Manufacturing and Construction and this way we have an idea about how each sector is faring;
GDP – this is a volatile release and one is monitoring what is happening in China an on the commodity markets then the GDP release should bring no surprises.

The key data in the United States is considered to be:

Core CPI – as it is the favored way for the Federal Reserve to measure inflation;
NFP – non-farm payrolls – it is released on the 1st Friday of each month no matter what. It is important as the Fed has a dual mandate, and beside inflation its job is to create jobs;
GDP – released on a monthly basis;
ISM Manufacturing and Non-manufacturing – the equivalent of UK's PMI's;
Durable Goods orders.