Most Trusted Binary Options Brokers

Most Trusted Binary Options Brokers

High Low Australia

Australian binary option

Commonwealth of Australia

Economy of the Commonwealth of Australia : facts & statistics

Currency : AUD
Official nameCommonwealth of Australia
Nominal GDP$914,400 million (2011)
GDP per capita$40,234
Real GDP growth rate2.71% (2014)
Inflation rate2.49% (2014)
Unemployment rate6.1% (December 2014)

Top Binary Options Brokers in Australia

Understanding the Characteristics of Australian Dollar in Order to Make a Profit

Australian dollar is the official currency of Commonwealth of Australia and it is well-known as a representative of high interest rate currencies.

The Australian dollar is the 5th most traded currency, after the US dollar, the euro, the Japanese yen and the pound sterling. It has been issued in Australia when it was independent of Britain. The Australian dollar is well-known as the currency of a country wealthy in natural resources, such as coal and iron ore.

Even amid the global economic crisis, due to its abundant natural resources, Australia has achieved an annual GDP growth rate of 3%. The GDP growth rate has been showing sharp increase from 2003. This is because that exports to China account for nearly half of all Australia’s exports.

That is to say, as the significant increase in economic growth is correlated to the growing Chinese economy, the Australian dollar is more likely to be influenced by the Chinese economic indicators instead of Australia’s economic indicators. Therefore, when you are focused on the movements of the Australian dollar, in addition to Australia’s economic indicators, you should also pay attention to Chinese economic indicators as it is Australia’s major trade partner.

In addition, as a characteristic of the currency of a country wealthy in natural resources, the Australian dollar is easily influenced by stocks. Different from the US dollar and the euro, the Australian dollar can be greatly influenced by the prices of crude oil and metal. Therefore, you should pay attention to these factors when you trade Australian dollar.

List of Economic Indicators You Should Pay Attention To When Trading Australian Dollar

・Australia

IndicatorRelease dates
RBA Monetary Policythe first Tuesday of each month
Newly Employed Personsin the middle of each month
Unemployment Ratethe first Friday of each month
Retail Salesthe 9th business day of each month
Consumer Price Indexaround the 20th of each month
Gross Domestic Product (GDP)quarterly

・China

IndicatorRelease dates
Gross Domestic Product (GDP)quarterly
Consumer Price Indexaround the 20th of each month
Retail Salesthe 9th business day of each month
Producer Price Indexquarterly

Here, we will introduce Chinese economic indicators because China is Australia’s major trade partner. In addition to China, Japan, South Korea, India, and the United States are also Australia’s trade partners. Therefore, it is better to pay attention to the economic indicators of these countries.

Due to the high interest rates, a lot of people invest in the Australian dollar. It is necessary to pay attention to the policy interest rate decisions made by the Reserve Bank of Australia in the monetary policy meetings on the first Tuesday of every month.

There is the possibility that exchange rates fluctuate after the release of monetary policy. Therefore, when it is released that interest rates will be reduced, it is very likely that the exchange rate will drop sharply as a lot of people who are concerned about interest rates will be discouraged and sell the Australian dollar. On the other hand, when it is released that interest rates will be raised, it is very likely the exchange rate will rise as investors can make a profit with high interest rates.

If you can predict accurately the movement in the foreign exchange market when monetary policy is released, there is a high probability that you can make a profit when you trade binary options.

Binary Options in Australia

On this website, we will introduce a list of best binary options brokers for Australian residents. Since the payout rates and trading details of brokers are different from one another, it is better to choose the right broker for your purpose.

What You Should Pay Attention To When Trading Australian Dollar

By comparing with the economy before 2000, Australia has favorable economic conditions in recent years as the unemployment rate is low and the volume of exports is increasing. Even if compared with other major countries, the Australian economy has shown stable economic growth. As it is mentioned above, when you trade Australian dollar, you need to pay attention to the fact that the Australian dollar can be easily influenced by the prices of oil, minerals and farm products as Australia is a resource-rich country.

As soon as the prices of goods fall, institutional investors who conduct transactions in large amount will sell the Australian dollar. Compared with the US dollar and the euro, Australian dollar has low trading volumes, which would accelerate a fall in the Australian dollar. On the other hand, when the prices of goods rise, the exchange rate will also rise quickly. Therefore, you need to keep in mind that there are large movements in the Australian dollar exchange rate.

Below we have summarized factors that you need to pay attention to when you trade Australian dollar. Please take into consideration the following factors while trading.

  • The Oceania stock market follows the New York Stock Exchange. Therefore, sometimes, when a large movement occur in the New York Stock Exchange, it is possible that there will be a large movement in the Oceania stock market
  • Unless the big events happened, investors usually trade the Australian dollar by looking at the Chinese stock market and the Japanese stock market. Therefore, you need to pay attention to the stock prices while trading.
  • Large movements in the market may happen when Chinese economic indicators are released. Therefore, it is necessary to pay attention to this factor.
  • In addition to Chinese economic indicators, economic indicators for the U.S. economy also have a great impact on the movements of the market.
  • When the New York Stock Exchange is open, the Australian dollar can be easily influenced by the New York Dow Jones and commodity markets. Especially, since the Australian dollar can be easily influenced by oil prices, it is necessary to pay attention to the movements of oil prices.

As the movements in the value of Australian dollar are largely influenced by various external factors, an investor may make a lot of mistakes in predicting the market by just looking at the Australian economic indicators. As a novice investor, at first, it may be difficult to trade binary options and make a prediction by looking at economic indicators. Therefore, it is better to trade currencies that you can collect information about them easily, such as, USD and EUR.

Changes in policy interest rate of the Australia

2014

2015

2014
JANFEBMARAPRMAYJUN
2.502.502.502.502.502.50
JULYAUGSEPTOCTNOVDEC
2.502.502.502.502.502.50
2015
JANFEBMARAPRMAYJUN
2.502.252.252.252.002.00
JULYAUGSEPTOCTNOVDEC
2.002.00

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