Following the US Dollar, Euro, Yen, and British Pound, the Australian Dollar, or ‘Aussie’, is the fifth-most-traded currency in the foreign exchange markets. Whether you want to trade the Australian Dollar to diversify your portfolio, or to take advantage of the high interest rates in Australia, one thing is certain: the Australian Dollar is a favorite amongst currency traders for its reliability and broad range of benefits.
|Australian Dollar Contract Specifications|
|Contract Size||100,000 Australian dollars|
|Contract Month Listings||Six months in the March quarterly cycle (Mar, Jun, Sep, Dec)|
|Settlement Procedure||Physical Delivery|
Daily FX Settlement Procedure
Final FX Settlement Procedure
|Position Accountability||6,000 contracts|
|Ticker Symbol||CME Globex Electronic Markets: 6E|
Open Outcry: AD
AON Code: LA
|Minimum Price Increment||$.0001 per Australian dollar increments ($10.00/contract). $.00005 per Australian dollar increments ($5.00/contract) for AUD/USD futures intra-currency spreads executed on the trading floor and electronically, and for AON transactions.|
|Trading Hours||Open Outcry (RTH): 7:20am-2:00pm CT|
|Globex (ETH): Sundays: 5:00pm – 4:00pm CT next day.|
Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT.
|CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm|
|Last Trade Date||9:16 a.m. Central Time (CT) on the second business day immediately preceding the third Wednesday of the contract month (usually Monday).|
|Block Trade Eligibility||Yes.|
|Block Minimum||100 Contracts|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CME.|
Australian Dollar Facts
Australia’s notes are printed on polymer and have features that make it difficult to counterfeit. Australian dollar futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.
Currency rates are determined by a one base currency quoted in relation to a different currency. Major currencies that are traded are floating. Central bank monetary policies can affect the value of currency. The Reserve Bank of Australia regulates monetary policy for its currency. For instance, low interest rates dictated as policy can be bearish for currency value because new money is being pumped into the market. This is unappealing to foreign investors because returns yield those low interest rates. In contrast, high interest rates set as policy are bullish and appealing to foreign investors because of high interest yields from the returns. Currency values can be also be affected by the nation’s current account balance. An excess or influx in the balance is considered to be bullish, while a deficit or drainage is considered to be bearish. Economic stability and investment in the country also help strengthen currency values because international investors are likely to buy into that country’s favorable markets
Last updated May 2013
Australian Dollar News Articles
- Kiwi pushes higher against major peers (4/24/2014) - The New Zealand dollar marked advances against many of its major counterparts on Thursday following the Reserve Bank of New Zealand increasing interest rates for the second time in the past two months, according to Reuters.
- Aussie endures largest losses in 90 days against greenback (4/23/2014) - The Australian dollar marked its biggest losses in about three months against the world's reserve currency on Wednesday after the South Pacific nation released official data indicating core inflation data was weaker than economists and analysts expected, according to Bloomberg.
- Aussie pushes higher against U.S. dollar (4/22/2014) - The Australian dollar notched its top gains in more than two weeks against the world's reserve currency on Tuesday prior to the government of the South Pacific nation releasing inflation data, according to Bloomberg.
- Aussie dives against all top rivals (4/15/2014) - The Australian dollar dipped in value on Tuesday against each of its 16 major rivals after the Reserve Bank of Australia released minutes noting the monetary unit's rise was proving to be detrimental to the nation's drive toward balancing growth, according to Bloomberg.
- Aussie dips against dollar yet still poised for weekly gains (4/11/2014) - The Australian dollar lost value on Friday against all of its major rivals following the downward dip of global stocks, which reduced demand for higher-yielding currencies, according to Bloomberg.
- Aussie touches 2014-highs against dollar (4/10/2014) - The Australian dollar achieved its top value thus far this year against the world's reserve currency on Thursday, prompted higher by the South Pacific nation's unemployment rate falling for the first time since the end of the third quarter of last year, according to Bloomberg.
- Aussie’s gain streak against greenback set to close (4/4/2014) - The Australian dollar was dropping toward a weekly loss against the world's reserve currency on Friday, which would end a bullish trend for the South Pacific monetary unit against its cross-Pacific rival, according to Bloomberg.
- Aussie marks advance against greenback (4/1/2014) - The Australian dollar on Tuesday achieved gains against the world's reserve currency after the central bank of the South Pacific nation decided to leave borrowing costs unchanged, according to Bloomberg.
- Aussie pushes higher against all top peers (3/26/2014) - The Australian dollar pushed to its four-month peak on Wednesday against the world's reserve currency after the leader of the central bank expressed a bright optimism about economic growth this year during a speech in Hong Kong, according to Bloomberg.
- Aussie continues rising against dollar (3/24/2014) - The Australian dollar climbed on Monday against the world's reserve currency, continuing to push ahead after performing strongly last week against its cross-Pacific rival, according to Bloomberg.
Australian Dollar Blog Posts
- Beyond the “Spotlight” (2/19/2013) - The Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.
- Beyond the “Spotlight” (1/28/2013) - The Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.
- Technically Speaking: Markets You Should Be Watching Right Now! (7/22/2011) - This is a sample entry from Brian Cullen’s email newsletter, The Cullen Outlook. September Australian Dollar Selling off of what I believe to be slight resistance above a trading channel. Consider selling at slight resistance off the recent high using a limit order. Objective would be a re-test of the recent lows at the bottom... Read More.