Australian Dollars to GBP – trading tips

The Aussie dollar and the British pound represent a trendy forex pair. A daily volume of the Australian dollar to GBP trading is significant since its trading is popular among veteran traders and newbies.

Factors Affecting the Australian Dollar to GBP Trading

One of the most important factors for this trading pair is the value of the Aussie Dollar. And its value depends on the overall performance of the Australian economy.

Political and economic factors go hand in hand when it comes to determining the currency rates. Many political and economic factors influence the Australian Dollar. Particular influence comes from the export/ import sector, and especially the export of commodities like mineral metals.

The Australian economy is primarily based on mining since it has huge resources of gold, coal, diamonds, and also rare metals such as uranium and zinc. The trading volume of these resources, which takes place mostly between Australia and China, have a significant impact on the exchange rate of the AUD/GBP currency trading pair.

The economic data calendar is an indispensable tool for every Forex trader. By relying on it, you can track the economic health of the country.

Regarding GBP rate, monetary policies, in general, determine the pound sterling price. The creator of these policies is the Bank of England which tries to control the inflation at any time.

When it comes to Australia, the leading role in determining the value of the Aussie Dollar is the Reserve Bank of Australia. Considerably low-interest rates implemented on Australian Government debts is also an important factor that affects this currency pair.

How to Trade Australian Dollars to GBP via CFD

An individual can trade on Forex Australian dollars to pound or GBP to Australian dollars with either a forex contract or through a contract for difference (CFD).

A CFD represents a financial instrument where one party accepts to pay for the difference to the other party between the beginning and the end of a trade. The trader can hold a long or short position. If you hold a long position, you expect the price to go up. By keeping the short position, you expect the price to go down.

The Best Strategies For Trading AUD/GBP

If you look for the currency pair AUD GBP or AUD TO GBP to trade on the Forex market through the CFD, that means you will speculate on the underlying asset direction. In case you presume the Aussie will increase, take a long position. If you expect the Aussie to decrease against the pound take a short position.

1. Scalping strategy Australian dollars to GBP

This strategy is for fast traders since the trade happens within minutes. The downside of this strategy is that your gains won’t be large. Also, the losses remain at the lowest. What makes your wins big is the accumulation of the consecutive small earnings.

2. Day trading AUD/USD

Day trading, as the name suggests, is for the patient ones who like the idea of longer trading time. You can trade for 3 to 6 more times longer compared to the scalping, which is 15-30 minutes per trade.

3. Swing technique AUD/USD

Swing technique Australian Dollars to GBP stretches to a couple of days and sometimes the weeks. Since this is long term trading, you can expect a considerable amount to gain.

Before taking any decision, do your all-round analysis. Shape your analysis by using the technical indicators and analysis charts. They are available on all trading platforms providing you with the various chart formats and market updates available on your mobile, iOS, Android or desktop.

There are GDP reports that are released by the government officials, and it’s recommended for traders and investors to follow these to determine the direction the market should take and to make the trading decisions accordingly.

History of Aussie and Sterling Pound

The “pound sterling” (symbolized since the 18th century by the well-known sign “£”), came into being around the end of the 11th century, sometime after the famous Norman invasion of 1066. Some historians also suspect that the word “sterling” has been invented precisely as a result of this historical episode since it derives from the Norman term “steorra” which means “star”. The fact is that the first coins of pounds sterling or “pennies were struck with a star pattern on their faces tends to corroborate this version of the facts.

The term has remained immutably used to denote the current monetary unit throughout the whole of the United Kingdom, the British Overseas Territories as well as in the multiple other dependencies of the Crown of Great Britain.

Regarding the Australian Dollar, or popularly called the Aussie, was created after the Australian pound in 1960. The old imperial monetary system was replaced because most trades of the country are made between the Australian and Asian continent.