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).

Is the Australian dollar testing a critical pivot zone?

Technical Outlook: The Australian Dollar is once again testing a critical pivot zone around at 6991-7021- a region defined by the November 2020 low, the 2020 yearly open and the 2018 low. We’re looking for a possible topside exhaustion / price inflection into this zone in the week ahead.

What factors determine the AUD/USD exchange rate?

There are two main factors that determine the AUD/USD exchange rate: The Reserve Bank of Australia and Federal Reserve control the supply of money in the market to keep the economy on track. A dovish policy, also known as expansionary policy, weakens the currency as the monetary supply increases.

Why is AUD a popular currency in Australia?

AUD/USD is the fourth most actively traded currency pair, representing around 7% of total forex market turnover. Its popularity is due, in part, to Australia’s political and economic stability, as well as the government’s limited interventions in the forex market. Despite this, it isn't one of the six currencies that form the US dollar index (DXY).