Lesson #1 - AUDUSD
The AUDUSD currency pair is one of the most traded pairs in the Forex market. It represents the exchange rate between the Australian dollar (AUD) and the US dollar (USD). The Australian dollar is considered a commodity currency, meaning its value is strongly tied to commodity prices, such as gold and iron ore, of which Australia is a major exporter.
The US dollar, on the other hand, is the world's most dominant currency, often seen as a safe-haven asset. The value of AUDUSD is frequently shaped by the monetary policies of the US Federal Reserve (Fed) and the Reserve Bank of Australia (RBA).
Characteristics and Specifics
High volatility: AUDUSD is known for its high volatility, especially during the release of macroeconomic data from Australia and the US.
Strong link to commodities: This pair's price often reacts to changes in the prices of commodities exported by Australia.
Interest rate differentials: The value of this pair is often influenced by the interest rate differences between the US and Australia.
External factors: China’s policies, being Australia’s largest trading partner, significantly impact the AUDUSD exchange rate.
Summary
The AUDUSD currency pair offers many trading opportunities due to its volatility and the diverse factors affecting its value.
The combination of commodity prices, monetary policy, and macroeconomic events from both sides of the Pacific makes it particularly attractive to traders looking for short- and medium-term trading opportunities.
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SeaGreen & Green
SeaGreen levels are monthly supports and resistances set at the beginning of each calendar month. The price rarely reaches these levels, but when it does, it usually either changes direction long-term or consolidates at that level. This makes it an ideal level for investors and traders who position their trades over a longer time frame.