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
- Aussie slumps after China releases weak export data (3/10/2014) - The Australian dollar fell on Monday against the world's reserve currency after Chinese data indicated exports sharply fell in February, according to Reuters.
- Aussie resumes upward tick against dollar (3/7/2014) - The Australian dollar rose in value on Friday against the world's reserve currency, staying close to its top value in three months against the greenback, according to Bloomberg.
- Aussie rises against greenback (3/6/2014) - The Australian dollar climbed on Thursday against the world's reserve currency, moving beyond its top value in seven days against the greenback, according to Bloomberg.
- Aussie rises against greenback after GDP expands (3/5/2014) - The Australian dollar climbed on Wednesday against the world's reserve currency, spurred higher by the release of economic data indicating the nation's economy widened more than projected during the fourth quarter of 2013, according to Bloomberg.
- Aussie dips against greenback after marking earlier gains (3/4/2014) - The Australian dollar fell on Tuesday against all of its 16 major rivals after the governor of the central bank of the South Pacific nation said interest remains high, according to Bloomberg.
- Aussie slumps amid concerns about business investment (2/27/2014) - The monetary unit of Australia dipped on Thursday against the U.S. dollar amid concerns about weak investment in business, according to Reuters.
- Aussie tracks yuan’s dip (2/25/2014) - The Australian dollar dropped on Tuesday, tracking the downward dive of the Chinese yuan as concerns spread about efforts by the People's Bank of China to reduce the renminbi's performance, according to Reuters.
- Aussie touches month highs against greenback (2/18/2014) - The Australian dollar pushed to its four-week height against the world's reserve currency on Tuesday after the Reserve Bank of Australia indicated the impact of efforts to intervene have been for the better, according to Bloomberg.
- Aussie edges higher against greenback as trade week ends (2/14/2014) - The Australian dollar on Friday climbed against the world's reserve currency, spurred higher by Chinese consumer prices pushing ahead more than forecast, according to Bloomberg.
- Aussie slumps after release of weak jobs data (2/13/2014) - The Australian dollar marked its biggest losses since the middle of last month during the Thursday trade session against the world's reserve currency after the nation released weaker than forecast employment information, 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.