Introduction to AUD/GBP
The AUD/GBP currency pair can be considered as one of the most competitive forex trading pairs. It is undoubtedly one of the most common forex trading pairs. AUD/GBP which stands for both the Australian Dollar and the British Pound. The pair’s exchange rates are heavily influenced by the correlation between two major global economies: Australia’s and Britain’s.
History of the AUD/GBP pair
The Australian dollar (AUD) is the unit of currency used in the Australian commonwealth. The sign for the Australian dollar is the $. The Australian commonwealth comprises the Cocos Islands, Norfolk Island. Others include Pacific Island colonies, Christmas Island and Australia. This currency is also called “Aussie” and frequently written as A$ or AU$. Since 1966 the Australian dollar was in use after replacing the Australian pound. Today, it is the fifth most traded currency and is supported by a powerful economy. AUD is regarded as a commodity currency because of the high impact on the Australian dollar on the prices of gold, oil and gas.
GBP is an abbreviation for the British pound sterling. The United Kingdom’s national currency, South Georgia’s British overseas colonies. Others include the South Sandwich Islands, and British Antarctic Territory and the United Kingdom. The Isle of Man and the Channel Islands are crown dependencies. The oldest constantly in use currency since its creation, the GPB has many names — from the formal “pound sterling” to the local “quid.”
What every forex trader should know about the AUD/GBP pair
The Australian Dollar currency pairing with the British Pound (AUD/GBP) is a common foreign-exchange pair. It reflects a large amount of regular trade. It is a combination that is common among experienced traders as well as newcomers. Despite their strong relations in the past, the AUD/GBP pair today shows a decent share of uncertainty. It offers various incentives for day traders and other forms of traders based on their forex trading strategies. Some traders are skillful in predicting shifts in trends between currencies using volatility.
Factors that Influence AUD/GBP
Role of AUD
Role of GBP
A significant factor that affects the value of GBP is the overall performance of the economy across the United Kingdom. The 3 gross domestic product (GDP) accounts are released. It includes; the Preliminary Gross Domestic Product, the Revised Gross Domestic Product, and the Final Gross Domestic Product. Investors and traders will monitor these reports when attempting to define the future direction in the trade market.
What is the best time to trade AUD/GBP?
The AUD/GBP trade time in the United States is from Sunday evening to Friday afternoon. It offers significant profit opportunities in each 24-hour cycle. Volume and variability differ considerably. With spreads increasing in quiet cycles and narrowing in busy hours. Although, a forex advantage is the opportunity to open and close positions at any moment. Most trading strategies unfold across busy times.