Currency pair GBPAUD
The choice of the Forex currency pair with which a trader will work directly determines his performance.
The subtleties of the movement of the instrument, the factors that influence both currencies separately and what the exchange rate is based on, is the basis for making the right trading decisions.
GBPAUD is a trading instrument that combines two national currencies, the British pound and the Australian dollar.
To understand the mechanism of plotting a chart, when you see this symbol, you must clearly understand that the chart displays the number of Australian dollars that must be paid for 1 British pound.
Both of these currencies are slightly inferior in terms of money supply turnover to such giants as the dollar and the euro, but they confidently occupy the fourth and fifth places in the world in terms of global volume.
British pound (GBP).
GBP is one of the world's oldest currencies and is the national currency of Great Britain. The rate of this instrument is influenced by both internal and external factors.
Among internal factors, it is worth paying special attention to macroeconomics, especially indicators such as unemployment, inflation, interest rates, GDP, trade balance and much more. Also, do not forget that London is the second largest financial center where prices are actively set.
Among the external factors that influence the pound are external economic relations with partner countries. Britain has strong economic relations with the USA and Europe, so collapses on these world markets and the deterioration of the economic condition of partner countries greatly affect the GBP exchange rate.
Australian dollar (AUD).
AUD is the national currency of Australia. The Australian dollar is rightfully considered one of the commodity currencies, so commodity prices have the strongest impact on the AUD. The Australian economy and Australian exports are almost 70 percent tied to such large partner countries as China, Japan and the USA.
It is worth noting that Australia is one of the leaders in the production of gold and many other precious metals. Australia also has gas and oil shelves. Industry is relatively underdeveloped, but 15 percent of exports come from it.
In addition to the obvious factors of the commodity market, the exchange rate of the Australian dollar is influenced by weather conditions and world prices for agricultural products, since Australia is an agricultural country.
However, despite obvious external factors, internal macroeconomic indicators such as GDP, balance, unemployment, inflation, retail sales have one of the strongest impacts on the AUD. This pattern can be seen when news on AUD is released on any currency pair with its presence.
In addition, I would like to note the high interest rate in Australia, which makes it possible to actively use the currency in such trading tactics as carry trade ( http://time-forex.com/terminy/karry-trade ).
In conclusion, it can be noted that GBPAUD is a cross rate and the only thing that strongly unites them is a strong external dependence on trade with a common economic partner, the United States.
In addition to fundamental factors, GBPAUD lends itself well to technical analysis, since both instruments together create protracted trend movements with low volatility, which allows even a beginner to get into the trading course very quickly.