Trading AUD/USD.

AUD/USD is traded in amounts denominated in AUD.

Standard lot sizes are 100,000 AUD and mini lot sizes are 10,000 AUD.

The pip value, which is denominated in U.S. dollars, is calculated by dividing 1 pip of AUD/USD (that’s 0.0001) by the AUD/USD’s current rate.

Profit and loss are denominated in U.S. dollars.

For one standard lot position size, each pip movement is worth 10 USD.

For one mini lot position size, each pip movement is worth 1 USD.

Margin calculations are based on U.S. dollars.

For example, if the current AUD/USD rate is 0.9000 and the leverage is 100:1, 900 USD is needed in available margin to be able to trade on a standard lot of 100,000 AUD.

However, as AUD/USD rises, a larger available margin in USD is required.

Conversely, the lower AUD/USD rate is, the less required available margin is needed.

AUD/USD Trading Tactics

Since the AUD is one of the best candidates for carry trade, which is the buying of a currency with high interest rates and the selling of a currency with low interest rates, AUD/USD is highly affected by crosses.

How can you use this to your advantage?

Well, if you see a break of a significant technical support level in AUD/JPY, that could be a good sign to sell AUD/USD!

Another thing to consider when trading AUDUSD is data coming out from New Zealand.

Because of Australia’s nearness and trade relations with New Zealand, positive economic data from New Zealand usually helps push the AUD’s value up.

This means that better-than-expected New Zealand economic reports could be seen as a good signal to buy the AUD.

Conversely, poor economic data from New Zealand could be a reason to sell the AUD.

Lastly, take some time to look at how commodity prices, especially gold are doing.

More often than not, the price of gold leads the AUD.

This means that whenever the gold rises in value, AUD/USD could rally soon after!

Of course, when the value of gold falls, the AUD also tends to follow suit.

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