Australian dollar crash: how low will it go?
Key points
- AUD/USD is down almost 5% on the year and off 10% from 2023 highs
- In the last 20 years, AUD/USD has only closed below 0.6400 once (monthly)
- 79% of tastyfx traders in AUD/USD hold long positions
Why is Australian dollar falling?
This week, Australian dollar finds itself under 0.6400 against US dollar. The most recent factor for AUD's decline was a rate hold from the RBA at 4.1% Monday night. With no indication of another rate hike in 2023, demand to hold Australian dollars is subject to fall as other major currencies still boast higher interest rates.
How to trade AUD/USD
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on AUD/USD
Trading forex requires an account with a forex provider like tastyfx. AUD/USD can be found in tastyfx's platform under the 'Major' pairs tab. Many traders also watch major forex pairs like GBP/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s Learn Center. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
What is the RBA?
The RBA, or Reserve Bank of Australia, is Australia's central bank. Its responsibilities include issuing the nation's currency (Australian dollar), conducting monetary policy and maintaining a stable financial system.
What is client sentiment?
Client Sentiment shows the percentage of tastyfx client accounts with open positions that are currently long or short. If the majority of client accounts with open positions are long a given market, then they expect the price to rise; if the majority is short, then they expect it to fall.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
