Forex trading with the GBP/AUD currency pair is an attractive option for traders who are attracted by high volatility and diverse trading opportunities. This pair is a combination of the British Pound Sterling (GBP) and the Australian Dollar (AUD).
The following are some of the distinctive characteristics of the GBP/AUD currency pair :
GBP/AUD is often known as a fairly volatile currency pair. These high price fluctuations can provide interesting trading opportunities, but they also increase trading risks.
The GBP/AUD has a correlation with certain commodity prices, especially with the prices of metals and natural resources exported by Australia. When commodity prices experience large changes, this can have a significant impact on the GBP/AUD exchange rate.
The GBP/AUD currency pair is vulnerable to the impact of news and economic events from both the UK and Australia. Economic data, monetary policy and political events from both countries can cause sharp changes in the pair’s price.
The high volatility characteristic of GBP/AUD often results in fluctuating price movements in the short term. This can create opportunities for range trading, namely buying at support levels and selling at resistance levels.
The GBP/AUD currency pair is generally most active during the European and Asian trading sessions, as this time coincides with active trading times in both countries.
GBP/AUD can be heavily influenced by Brexit-related events, especially news and political decisions regarding the UK’s exit from the European Union. Any Brexit-related developments could lead to major changes in the GBP/AUD exchange rate.
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