What is ‘AUD’ in forex?
AUD in forex refers to the Australian Dollar, which is the currency used in Australia. It is one of the major currencies traded in the foreign exchange market. The AUD is highly influenced by factors such as the country’s economic performance, interest rates, trade balance, and commodity prices, as Australia is a major exporter of commodities like iron ore and gold.
Traders and investors often trade AUD in currency pairs such as AUD/USD or AUD/EUR, speculating on its value relative to other currencies. The AUD is known for its volatility and is widely traded by both retail and institutional traders.
Example for AUD
In the context of forex trading, AUD is commonly used as the base currency or the quote currency in currency pairs. For example, the currency pair AUD/USD represents the value of one Australian Dollar in terms of the US Dollar.
In this case, if the AUD/USD exchange rate is 0.75, it means that 1 Australian Dollar is equal to 0.75 US Dollars. Traders in the forex market can speculate on the movement of AUD against other currencies to make profits.