The base currency is the AUD, while the USD is considered the quote. For those familiar with forex trading, it’s known that the Aussie is the most common nickname for the AUD/USD. The Aussie might be affected by country-specific factors, such as the production of copper and iron, because Australia is considered to be one of the world’s largest coal and iron ore exporters.
What Is the Spread of the AUD/USD?
Generally, the spread for the AUD/USD ranges from 0 to 3 pips, but it varies from broker to broker. The lower the better, since it’s less costly to trade the AUD/USD. When you open a one lot position of AUD/USD with a spread of one pip, you will pay AU$15 fee. However, if the spread is 3 pips, it will cost you AU$45 instead of AU$15 for one lot of AUD/USD.
Which Types of Market News and Events Significantly Impact the AUD/USD?
The Federal Reserve or the Reserve Bank of Australia decisions impacting rates can significantly impact AUD/USD price volatility. You will see huge spikes on AUD/USD charts, as individual and corporate traders adjust their positions according to the news.
What Is the Minimum Lot Requirement Needed to Trade This Pair?
Nano is the smallest lot that can be used to open a trade for the AUD/USD pair. If you use the MT4 platform, you should be able to input 0.0001 to open a nano position that is worth 100 currency units.