AUDCAD - Definition and Characteristics

The AUDCAD currency cross displays the exchange rate between the quotation currency, the Canadian dollar, and the Australian dollar (the base currency). The exchange rate represents how many Canadian dollars are needed to purchase one Australian dollar. For instance, if the AUDCAD cross trades at 0.85, you need 0.85 CAD to buy one AUD, implying the Canadian dollar is stronger than the Australian dollar.

Australia is not a very huge nation; as of 2019, it ranked 50 in terms of population, 25 in terms of the value of its exports, and 14th in terms of GDP globally. It is also less than one-tenth the size of the United States. Nevertheless, the Australian dollar is one of the market's top five most traded currencies.

On the other hand, the Canadian dollar is oneof the top ten most traded currencies on the international exchange markets. Moreover, the Canadian dollar (CAD) had one of the most outstanding performances versus the US dollar (USD) in the first ten years of the new century because of Canada's booming energy and commodity exports.

Commodities influence both currencies in this cross –the Canadian dollar tends to be more correlated to oil. In contrast, the Australian dollar usually follows the price of industrial metals, such as iron ore, copper, and others.

Also, one might say that the Canadian dollar is less risky, mainly due to its closeness to the USD, leaving the AUDCAD cross to the usual risk on/off flows. In optimistic times, the cross usually rises, while it tends to decline in times of risk aversion.

Specification of trading symbols


The AUDCAD cross has gone nowhere in the last three decades and tends to fluctuate between 0.80 and 1.05. When writing, the price is on its way to the 2020 lows in the 0.80 region as the global economy faces a recession. Additionally, aspreviously said, the Canadian dollar is tied to oil prices. Since the WTI oil rose to new decade highs above 120 USD in 2022, the CAD received massive support, strengthening against the Australian dollar.Once the sentiment improves, the cross will likelyreturn toward parity. Therefore, this trading instrument is not suitable for long-term investors and holders due to its sideways trend. Instead, swing traders could benefit from its cycles as it often provides good momentum lasting for several weeks or months.

Source: Purple Trading Metatrader 4

AUDCAD - quotes and trading


The AUDCAD currency cross is available for trading on our Purple Trading Metatrader 4 platform. First, choose the new order button after finding the ticker AUDCAD on the Metatrader 4 interface. The following window will appear.Source: Purple Trading Metatrader 4.

Ropa Brent v platformě MT4

Source: Purple Trading Metatrader 4

Lot value calculation

When you open our Metatrader 4 platform and click on the AUDCAD ticker, you'll see that there is often a 1 pip spread between the Ask and the Bid priceduring periods of high liquidity (usually when London and New York are open for trading).

One micro lot is the minimum volume for trading AUDCAD (0.01). If you trade a mini lot (0.1), you will gain or lose 7 USD for each 10 pips AUDCAD makes. Every 10 pips of AUDCAD movement will yield 35 USD profit/loss when trading half a lot. For example, you buy half a lot at 0.85, and AUDCAD goes to 0.8550. Your total profit will be 175 USD (calculated as 50 pips movement * 35 USD profit per 10 pips of the move). Whenentering a short position, the same principle determines your profit or loss.

The AUDCAD is priced in Canadian dollars, so keep that in mind. Therefore, whether your account is in EUR or another currency, your profit or loss must be converted to EUR at the current exchange rate.

You have the option of trading at market price (market execution) or using pending orders (limit and stop orders). In addition, you can start trading without the stop-loss and take-profit orders and add them later.

Now you can try how Forex works on our trading platform!

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Frequently asked questions and terms

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Aussie is a slang term for Australian It is sometimes used specifically for the AUD/USD currency pair.
BOC - Bank of Canada
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BOC is the central bank of Canada.
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The basic unit of traded volume. For currency pairs, it is 100,000 units of the base currency. Lot size varies between individual CFD-type instruments as it is based on the number of contracts set for each one.

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A micro-lot is a trading unit derived from the standard trading unit, which in the Forex world is the lot. While 1 lot represents a transaction of 100,000 units of the currency mentioned first in a currency pair, the value of 1 micro lot is 1,000 units.

If you are interested in the relationship between lots, micro-lots, leverage, and margin, we recommend reading the article about micro-lots we wrote on the subject.

A micro lot is 0.01 lot.
Mini lot
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A mini lot is a volume of 0.1 lot.
Quote currency (counter currency)
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It is the second currency in the currency pair. For example, in the EURJPY pair, the quote currency is JPY.
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A fee charged for holding a trading position overnight. It is expressed in points or percents and it is directly proportional to the volume of the trading position held. Please note the Swap for Forex pairs and precious metals is being charged 3x on Wednesday, which includes also the weekend swaps. (Swap is charged at Wednesday - Thursday midnight) For other symbols is being charged 3x on Friday. (Swap is charged at Friday - Saturday midnight)
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.60 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.