We know the clichés, you know them too, but those clichés are quite wrong.
It’s not all Kangaroos and Koalas, Eileen doesn’t “come on”, and while traditional, Vegemite sandwiches aren’t that common, and all of those things, while entirely Australian are certainly not what drives the local economy.
As a matter of fact, the Australian economy is not to be looked down on, if working by GDP it has the 12th largest economy in the world despite being quite isolated in its own corner of the globe, making even the most basic trade difficult and lengthy.
Australia’s economy is dominated and driven by the mining sector which at last count represents about 20% of its GDP, and while that might not seem like much, one must consider that the lion’s share of the GDP is taken up by the service industry which, while vital, does not usually serve as a financial catalyst and does not usually count towards driving a national economy.
Australia is also the home to quite a few multi-national conglomerates such as the Commonwealth bank, ANZ, Westpac, Telstra, Rio Tinto group and other mining companies.
Quite a bit of Australia’s exporting business is geared towards the east Asia markets with which it maintains perhaps the closest set of economic ties to insure financial stability and profitability.
But perhaps the best measure of the Australian’s economy success in the global market is the fact that it has managed to sustain a nearly unbelievable streak of 21 years of consistent economic growth without going through any recessions, which is quite remarkable when one considers that the world has gone through 2 major crises in the last 15 years (the dot-com bubble bursting and the more recent global financial crisis).
Australia’s reliance on exporting its commodities cannot be overvalued, as it exports anything from coal to gold, copper and diamonds and is consistently near if not at the top of those industries, which all contribute a significant amount to the national economy.
With an economy based so heavily on physical commodities it is no wonder that this specific currency pairing behaves slightly differently than others.
While other pairings may call for you to focus on various financial announcements and trends on either side of the pairing, the AUD-USD pairing is unique in the fact that it adds another layer to that always present banking and financial aspect of currency trading.
As with any binary options which includes the US Dollar, one must take into account a great many factors which go into its economy, such as employment and interest rates, GDP forecasts and announcements any attempts by the FED to maintain the level of the Dollar and consumer reports which are all vital to the growth of the US.
So while the US side of this pair is driven mostly by reports and financial figures, the Australian side relies a little more heavily on its actual economy to help maintain its balance and relative strength versus the US Dollar.
The good thing about this specific currency pair is that because of the difference in respective economies you can more easily predict the direction for each side, making it that much easier for you as a binary trader to succeed.
Trade successfully in this binary option, and you could easily avoid all of your investments going “down under”.