Convert AUD to USD
The strength of the commodity currency Australian dollar is closely interlinked with crude oil prices. The AUD is also known as an 'oil proxy' as its value moves up and down with oil prices, as Australia is a key exporter of oil and natural gas.
Owing to a high interest rate differential between the two countries, AUD/USD traders can enjoy both high trading volume as well as volatility. This currency pair sees sharp upward movements when the forex markets enjoy a bullish sentiment and drops just as fast when the market sentiment turns bearish, offering experienced traders ample opportunities to capture quick pips.
Unlike in other developed economies like the US and Europe, an increase in commodity prices drives inflation higher, which tends to hurt the currency and economic growth. However, Australia - which is a key exporter of several commodities, benefits from an increase in commodity prices, which in turn, helps strengthen the AUD.