Aussie dollar 1

Aussie dollartrading characteristic

By-Amir Albitar

the Australian dollar is the fifth most actively traded currency behind the U.S dollar, the Euro, the Japanese yen, and the British pound. The current fundamentals driving Australian dollar price action include :- Asian economies - Commodity prices- Carry trade

We reviewed daily data for the AUD/USD pair from 3 April 2006 through 30 March 2007 (259 trading days)

Figure 1

• In March 2006 the AUD/USD pair fell almost to 0.7000 before swinging higher to eventually eclipse 0.7900 in November 2006

Figure 1

• After that, price chopped up and down for the better part of three months before dropping below 0.7700 in early March 2007

Figure 1

• It then promptly rocketed more than 9% from the 6 March low of 0.7678 to the 19 April high of 0.8395 ( a level it hasn’t reached since February 1989)

Daily range characteristics

• The smallest range was 0.0023 points in 14 April 2006

Daily range characteristics

• The largest range was 0.0154 points in 15 May 2006

Figure 3

• 79% of daily range were between 0.0040 and 0.0100 points

Figure 3

• only 8.8% of the ranges exceeded 0.0100 points

Figure 3

• 97 days were 0.0060 points

Close to close changes

Analyzing the close to close behavior revealed AUD/USD closed unchanged three times The largest one day decline of -0.0120 points in 15 May 2006

The largest one day gain of +0.0095 points in 15 April 2006

Figure 4

• The most closing differences were in the 0.0025 category

• There were 61 close to close changes in this category

Figure 4

• 84 % of the close to close difference were between -0.0050 and +0.0050 points

• The AUD/USD pair closed up 54%

Figure 4

• Net closing gains were +0.0050 points just 12%

• Net closing losses were -0.0050 points just 4%

Up & Down closing days

-       The price closed in positive territory on 142 days-       The price closed lower 114 days-       The price closed lower only three times after rallying 0.0050 points above the previous close -       The price was able to close higher only four times after price dropped -0.0050 points below the previous close -       There weren't any gap up openings

Figure 6

• The market closed up 142 times

Figure 6

• 81% the low was between 0.0000 and -0.0025 points

Figure 6

• 37% the price below the previous close

Intraday price action

The 7:00, 8:00, 9:00 and 18:00 hours all shared the largest average hourly range 0.0017 points

Dollar for dollar The Aussie dollar has been in an uptrend vs. the U.S dollar for more than a year