Major pair

AUD/USD(Aussie)

AUD/USD, the "Aussie," is the most-traded commodity-currency pair. The Australian Dollar is tightly correlated to global commodity prices and Chinese demand, making AUD/USD a leading risk-appetite indicator.

0.6 to 1.2 pips

Typical spread

50 to 80 pips

Daily range

$10

Pip value / lot

Sydney + Asian (5 PM to 3 AM ET)

Best session

What is AUD/USD?

AUD/USD pairs the Australian Dollar against the United States Dollar. The AUD is a commodity currency: Australia is one of the world's largest exporters of iron ore, coal, gold, and natural gas, and the Australian economy is heavily tied to Chinese industrial demand.

AUD is also a textbook risk-on currency. When global equities rally, AUD/USD tends to rise. When risk appetite collapses, the pair falls hard as capital rotates out of growth assets. Watching the S&P 500 alongside AUD/USD is a common cross-check for retail and institutional traders alike.

Base currency: AUD (Australian Dollar, Australia)
Quote currency: USD (US Dollar, United States)
Pip location: 4th decimal (0.0001)
Volume share: about 5% of daily global forex turnover

When to trade AUD/USD

AUD/USD is unusual among majors in that its prime session is Sydney + Asian (5 PM to 3 AM ET). RBA decisions, Australian CPI, and the bulk of Chinese economic data drop during these hours, and the pair often makes its largest moves overnight by US time.

The London-NY overlap can still produce 30 to 50 pip moves on USD-side news, but for Aussie-specific catalysts, you want to be at the screen during the Asian session. Avoid the late-NY window (3 to 5 PM ET) when both Sydney has not yet opened and US desks are clearing.

Best session: Sydney + Asian (5 PM to 3 AM ET)
Avoid: Late NY (3 to 5 PM ET, illiquid)

News events that move AUD/USD

RBA rate decisions (monthly, first Tuesday) are the biggest AUD-specific event. The accompanying Statement on Monetary Policy can move AUD/USD 40 to 80 pips. Australian CPI (quarterly) produces similar ranges.

But the highest-impact news for AUD often comes from China, not Australia. Chinese GDP, PMI, and retail sales prints reliably move AUD/USD because China is Australia's largest trading partner. A weak Chinese PMI typically pulls AUD/USD lower as the market prices in reduced commodity demand.

Central banks: Reserve Bank of Australia (RBA), Federal Reserve (Fed)
Key releases: RBA rate decisions, Australian CPI, Chinese GDP, Chinese PMI, FOMC

Want the full event calendar? See the economic calendar, and look up unfamiliar terms in the forex glossary.

AUD/USD FAQ

Why is AUD/USD considered a "risk-on" currency pair?

The Australian economy depends heavily on commodity exports and Chinese demand. Both correlate with global growth expectations. When equity markets rally (risk-on), AUD/USD rises. When risk appetite collapses, it falls hard.

How does Chinese data move AUD/USD?

China is Australia's largest trading partner by a wide margin. Strong Chinese GDP / PMI / retail sales support iron ore and coal demand, which strengthens AUD. Weak prints do the opposite. Chinese data routinely produces 20 to 50 pip moves on AUD/USD.

When does the RBA announce rates?

The Reserve Bank of Australia meets monthly (except January), typically the first Tuesday of the month at 2:30 PM Sydney time (12:30 AM ET / 11:30 PM ET prior day, depending on daylight savings). Watch the Statement on Monetary Policy released alongside.

Is AUD/USD a good pair for beginners?

For the trading mechanics (pip math, lot sizing), yes — AUD/USD uses the same 4-decimal pip convention as EUR/USD. For market timing, the Sydney / Asian session bias makes it harder for a trader on US hours to catch the prime moves.

What is the typical spread on AUD/USD?

On most ECN brokers, the AUD/USD spread is 0.6 to 1.2 pips during the Asian session. Slightly tighter during London-NY overlap when global liquidity is highest.

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