What is an AUD/USD pair?

The AUD/USD pair is the abbreviated term for the Australian dollar and the US dollar, nicknamed Aussie or the Aussie dollar. Before we get into the particulars, what exactly does the term AUD/USD mean? The exchange rate tells you how many US dollars (quote currency) are required to purchase one Australian dollar (base currency).

What is AUD currency?

This currency pair is also known as the "Aussie". Together with the New Zealand Dollar and the Canadian Dollar, the AUD is a commodity currency, that is a currency whose country's exports are largely comprised of raw materials (precious metals, oil, agriculture, etc.).

How does export and international trade data affect AUD/USD exchange rate?

Export and International Trade data. Better than forecast data increases the demand for the related currency and impacts the value of either the Australian dollar or the U.S. Dollar, causing fluctuations in the AUD/USD exchange rate as investors rush in to buy either currency. Let’s take a closer look at some of these events.

Why is the Aud a gross measure of market activity?

It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the AUD, while a low reading is negative.