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
- U.S. dollar holds gains against other currencies (10/1/2014) - The U.S. dollar continues to stand up to its fellow G-10 competitors.
- Dollar climbs to fourteen-month high on possible interest rate hike (9/10/2014) - On Tuesday the U.S. dollar rose to its highest level in fourteen months against the euro as investors expected the Federal Reserve would increase interest rates sooner than initially forecasted.
- Australian dollar lifted by unexpected inflation (7/23/2014) - The Australian dollar rose to a two week high after inflation, prompting markets to reduce the chances of a possible interest rate cut later this year.
- Australian dollar bounces back after rough 2013 (6/26/2014) - The Australian dollar is pushing higher against the world's reserve currency after last year enduring its sharpest losses since the mid 1980s, according to Bloomberg.
- Aussie dips against greenback, yen, euro (6/24/2014) - The Australian dollar edged down on Tuesday against the world's reserve currency, falling from the seven-month high that it touched on Monday, according to The Australian.
- Aussie, Kiwi push higher after strong Chinese manufacturing data (6/23/2014) - South Pacific currencies pushed higher on Monday after a private report noted the economy of China demonstrated its top growth in six months, Reuters reports.
- Aussie loses value after minutes note questions about growth (6/17/2014) - Questions about the near-term about the economy of Australia prompted the Aussie to slip in value on Tuesday as the Aussie endured its biggest losses in about two weeks against the world's reserve currency, according to Bloomberg.
- Aussie to continue strong performance, strategist says (6/6/2014) - The Australian dollar will drive higher as the year continues thanks to economy-spurring stimulus measures that the European Central Bank implements, a currency strategist at a prominent bank told Bloomberg as the trade week came to a close.
- Aussie dips against most top counterparts (5/20/2014) - The Australian dollar dipped to its lowest value in roughly two weeks against the world's reserve currency on Tuesday after the central bank of the South Pacific nation noted it intends to preserve the record-low rates of borrowing costs, according to Bloomberg.
- Aussie rises against greenback following stronger Chinese commerce data (5/8/2014) - The Australian dollar rose to its three-week peak against the world's reserve currency on Thursday in the aftermath of Chinese commerce data trumping expectations, according to Bloomberg.
Australian Dollar Blog Posts
- 6/6 Pre-Dawn Update (6/6/2014) - Good Morning— Happy Friday. I hope everyone had a great week, lets finish it up on a high note and get involved in the weekend. We have a few positions on and there are a few that I want to bring to your attention. So lets get crackin’… In the Indices and Financials: With yesterday’s... Read More.
- 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.