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Basic Fundamentals

What Market Fundamentals Can Affect The Australian Dollar Futures?

In free market economies, supply and demand is the primary enabler for price movement. Any outside forces that affect supply and demand eventually affect prices. When you are considering a trade in the Australian dollar market some of the basic fundamentals that you should consider are:

1. Commodity Prices: Australia is a major producer of: oil, gold, agricultural products, diamonds, iron ore, uranium, nickel and coal. So the Australian dollar is considered a commodity currency. When the price of commodities go up, the value of the Australian dollar tends goes up. When the price of commodities go down, the value of the Australian dollar tends to go down.

When trading the Australian dollar you should watch the regular reports produced by Australia's Bureau of Agricultural and Resource Economics and Sciences (ABARES). 

2. Interest Rates: The Reserve Bank of Australia (RBA) takes it mandate to control inflation very seriously, and tends to keep Australian interest rates among the highest in the developed world.

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