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 |
| Trading Hours | CME Globex: 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 | |
| Minimum Price Fluctuation | $.0001 per Australian dollar increments ($10.00/contract). $.00005 per Australian dollar increments ($5.00/contract) for AUD/USD futures intra-currency spreads executed electronically. |
| Product Code | CME Globex: 6A |
| CME ClearPort: AD | |
| Clearing: AD | |
| Listed Contracts | Twenty months in the March quarterly cycle (Mar, Jun, Sep, Dec) |
| Settlement Method | Deliverable |
| 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). |
| Settlement Procedures | Physical Delivery – AUD/USD Futures Settlement Procedures |
| Position Accountability | 6,000 contracts |
| Block Trade Eligibility | Yes. |
| Block Minimum | 100 Contracts |
| Exchange Rules | These contracts are listed with, and subject to, the rules and regulations of CME. |
| Source: CME Group | |
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
Source: Barchart, Reserve Bank of Australia
Last updated September 2015
Additional Info
Recent Posts on the Australian Dollar
- Trade Spotlight: Futures – Australian Dollar Breakout (1/9/2018)- There is a trade opportunity based on a Trend Line breakout in the Australian Dollar futures market. The March 2018 contract closed below the lower Trend Line today. The Trend Seeker is up at the moment, though with a weak ranking. The MACD indicator, another trend indicator, appears to be shifting bearish. The Stochastic indicator… Read more.
- The Cullen Outlook – Formation Finder (Aussie ) 10-12 (10/13/2017)- I like the idea of playing the bounce here but with a close stop (right under todays low). It either bounces here and runs higher or we will exit with a small loss right away....LETS GO!
- The Cullen Outlook – Formation Finder (Australian Dollar) (10/5/2017)- Something about the the Aussie I like this morning! Have a look at the chart below and TRADE IT WHEN YOU SEE IT!!! ...Let's Go!