AUDUSD pair – Definition and characteristics

The AUDUSD pair is one of the major currency pairs in the world. It is nicknamed the "Aussie," thus, if someone is speaking about the Aussie (dollar), it is the AUDUSD pair. 

The Aussie


The AUD in this pair is the Australian dollar, also known as the Aussie. The USD in this pair is the US dollar, also known as the greenback, or the buck. The quotation of the pair says to traders how many US dollars are needed to buy one Australian dollar. As AUDUSD trades below parity (lower than 1.0), it informs us that the Australian dollar is weaker than the US dollar.

Thus, the value of the AUDUSD pair is quoted as 1 Australian dollar per X US dollars. Meaning, if the pair is trading at 0.70, it requires 0.70 US dollars to buy one Australian dollar. If the AUDUSD pair rises to 0.75, it means that the Aussie has strengthened (the dollar has weakened), and it now takes 0.75 US dollars to buy one Australian dollar.

On the other hand, if the AUDUSD pair drops to 0.60, it means that the Aussie has weakened (and the dollar has strengthened), and it now takes 0.60 US dollars to buy one Australian dollar.

The AUDUSD pair is usually tightly correlated to the NZDUSD pair, as both the economies are very similar. These currencies are also called the Antipodean currency pairs.

End of Carry Trades

The AUD used to have one of the highest interest rates in the world, but the Reserve Bank of Australia slashed rates sharply in March 2020 to fight the COVID crisis. Thus, it is now impossible to make Carry Trades with the Australian dollar.

Commodity-linked currency


Since Australia is the largest coal and iron ore exporter, the movement of its currency is heavily dependent on commodity prices. That is why the performance of the Australian dollar is tied mainly to China, as China is of the largest importer of Australian commodities.

Traders watch the current economic cycle, how the world's (and especially China's) economy is doing, and at what stage of the commodity cycle are we in. The Aussie follows.

For example, if the world's economy rises at a solid pace, demand for iron ore picks up, and the Aussie usually strengthens. On the other hand, if the world's economy slumps, demand for commodities decreases, and so does the Australian dollar. To sum it up, the Australian dollar is one of the best known cyclical currencies.



When we take a look at the history chart of the AUDUSD pair, there is an apparent bearish trend, starting in 2014. Back then, the Aussie was trading at around 0.95 against the US dollar, nearly reaching parity.

As the Fed raised rates, the interest rate differential evaporated from this pair, making the US dollar more attractive. Afterward, the global economy started to slow, which once again undermined the Australian dollar. In 2020, the sell-off began by the COVID 19 panic, and investors rushed into the greenback, as it is the safest currency in the world. In April 2020, the AUDUSD pair was seen hovering near the 0.60 handle, which is a 40% decline in 6 years, making it one of the best trending pairs in the world.


Source: Purple Trading Metatrader 4

AUDUSD – Quotes and trading


If you open our Purple Trading Metatrader 4 platform, right-click on the AUDUSD pair and choose "new order," the following popup will appear:


As you can see, the spread between the Ask and the Bid price is 0.8 pips, but the spread can fluctuate slightly, mainly during volatile times of the day. 

Lot value calculation


The minimum amount to trade is 0.01 lot, while one full lot represents 100,000 AUD. So, if you are trading 0.01 lot (or a micro lot), you will be trading 1,000 AUD. The 0.1 lot is also called a mini lot and represents 10,000 AUD. If you want to buy or sell half a lot, you will be trading 50,000 AUD. Two lots are 200,000 AUD and so on.
Besides, you can open a market execution trade, which means that it will be done at the current market price, or you may use pending orders – limit and stop orders. Finally, it is possible to use the stop-loss and take-profit orders when opening the trade, or you can add them later when the deal is live.

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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.