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 slides to three-month low against greenback (12/4/2013) - The Australian dollar plunged to its three-month low against the world's reserve currency on Wednesday after the country's gross domestic product was lower than economists' projections, according to Bloomberg.
- Aussie slips toward five-year low against kiwi (12/3/2013) - The Australian dollar was nearing its lowest value in five years against the monetary unit of New Zealand on Tuesday as policy makers with the central bank of Australia prepared to meet, according to Bloomberg.
- Aussie pushes ahead against greenback (12/2/2013) - The Australian dollar rose on the first trade session of December against the world's reserve currency after economic data released by the South Pacific nation indicated building approvals fell less than projected, according to Bloomberg.
- Aussie heads toward weekly gains against yen (11/15/2013) - The Australian dollar was heading toward a weekly advance against the monetary unit of Japan on Friday, Bloomberg reports.
- Aussie holds losses against U.S. dollar (11/13/2013) - The Australian dollar was registering near its lowest value in about eight weeks on Wednesday against the world's reserve currency as conjecture mounted about the U.S. Federal Reserve's near-term plan regarding its monetary stimulus measures, according to Bloomberg.
- Aussie dives against greenback amid Chinese economic concerns (11/12/2013) - Australian traders' apprehension about dealing with China helped pulled down the Australian dollar against the world's reserve currency on Tuesday as the Aussie fell to its lowest value in about six weeks against the greenback, Bloomberg reports.
- Aussie pushes ahead against major rivals after China releases strong commerce data (11/8/2013) - The Australian dollar on Friday rose against most of its major counterparts after China released strong economic data about its imports and exports, Bloomberg reports.
- Aussie backtracks from week highs against greenback (11/7/2013) - The Australian dollar fell from week highs against the world's reserve currency on Thursday after the nation's full-time job market endured its sharpest losses in more than a year last month, Bloomberg reports.
- Aussie drops after RBA leaves interest rates unchanged (11/5/2013) - The Australian dollar slumped on Tuesday against the world's reserve currency after the chief of the central bank of the South Pacific nation said the Aussie's value remains too high, Bloomberg reports.
- Aussie marks biggest weekly losses against dollar in two-plus months (11/1/2013) - The Australian dollar was diving toward its biggest weekly losses against the world's reserve currency in more than two months on Friday, Bloomberg reports.
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) - 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 of the trading channel while risking a break to the upside near an... Read More.