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Differences between eur/usd and aud/usd

  • #1
  • First Post: Jul 24, 2006 11:50pm Jul 24, 2006 11:50pm
Are there major differences between typical price action of eur/usd and aud/usd? Does one trend more than the other, is one more volatile? I'm not looking for opinions, I'd just like to find out if there is already well known and irrefutable evidence regarding differences in their price action that I'm not aware of. I just noticed that moving average crossovers really stink in aud/usd, there are way too many whipsaws compared to eur. Is this just random or can a strategy be devised from this idea?
  • #2
  • Jul 25, 2006 12:19am Jul 25, 2006 12:19am
Quoting raschwebel
Are there major differences between typical price action of eur/usd and aud/usd? ...Is this just random or can a strategy be devised from this idea?
Without trying to offend the Ozzies, the world cares more about what Europe is doing monatarily.
ie. [i haven't looked it up but] more $ are hinged on what the EU does as opposed to what the AUD does.

Therefore....
There will be much more "Fast" reaction in the Euro Pit than the Ozzie but it will be similar in direction UNLESS the news is AUD based.
  • #3
  • Jul 25, 2006 12:25am Jul 25, 2006 12:25am
AUD is 85% correlated with Gold. If Gold is up, AUDUSD is up too.
  • #4
  • Jul 25, 2006 12:29am Jul 25, 2006 12:29am
I was watching the Ozzie vs. the CHF yesterdday. Once PPI figures came out which indicated a come interest rate rise it got interesting. When USD was bullish on the CHF the Ozzie followed lethargically, when the USD was bearish against CHF the Ozzie got intersted in the move.

SB
In trading you are only as smart as your dumbest mistake. - Ralph Vince
  • #5
  • Jul 25, 2006 10:59am Jul 25, 2006 10:59am
The AUD is a commodity related currency pair as mentioned before...Whenever commodities go up, it follows...The EUR on the other hand is not related to anything but the European economy....

AUD/USD is less volatile than the EUR/USD...

They don't have a direct strong relation, although I think that a trend in the EUR/USD will be accompanied by a trend in the AUD/USD in 60% of the time....


Thanks,

Nader
  • #6
  • Jun 28, 2009 2:49pm Jun 28, 2009 2:49pm
I think you have it backwards... the AUD/USD is MORE volatile than the EUR/USD. The Aussie can easily swing 3-400 pips in a day, while the EUR/USD does half that.

The Aussie is directly tied to the state of the US economy (and the the global economy in general, ie China, etc..), but more specifically to the Dow Jones Industrial Average, or the major manufacturers of the US. Australia is the only G8 nation to technically not have been hit by the recession.
  • #7
  • Jun 28, 2009 4:36pm Jun 28, 2009 4:36pm
I find that AUD/USD trends much better and is less "undecided" or choppy than EUR/USD.

Attached Image (click to enlarge)
Click to Enlarge Name: auejcorr.PNG Size: 44 KB


I've noticed a better correlation of Aussie to EUR/JPY as both seem to have a similar trending behaviour. Eurodollar is more raggedy.
  • #8
  • Jan 11, 2010 5:57am Jan 11, 2010 5:57am
The obvious difference to me is in the spread at times but I find if you're more suited to a less volatile market then trading the AUD/USD during Asian trading hours offers good day trading opportunities however if you're a guerilla or scalper then try the open of NY where the sepo's put their stamp on the market. Much harder to pick but if you're in tune then there is money to be made. EUR/USD is far more predictable to me so go there for polished chart reading.
  • #9
  • Feb 12, 2010 11:25pm Feb 12, 2010 11:25pm
The AUD/USD pair is very correlated to the S&P 500. I keep my eyes on the S&P as well as S&P futures while trading the pair during the day... night time isn't as easy but what occurs in the pair during the night will give you an idea of what the S&P will open at. I've been using the $DXY to trade the EUR/USD pair lately.

Cheers
When this baby hits 88 miles per hour, you're gonna see some serious s***.
  • #10
  • Feb 19, 2010 10:05pm Feb 19, 2010 10:05pm
Quoting doblece
I find that AUD/USD trends much better and is less "undecided" or choppy than EUR/USD.
You have it right in my opinion. Aud/Usd has less chop, better trend. Because it is highly correlated to Eur/Usd, I check the news for Euros before trading Aussies. Volatility is higher in Eur/Usd. The reason could be because it has much more retail trader activity.
  • #11
  • Last Post: Feb 19, 2010 10:11pm Feb 19, 2010 10:11pm
Quoting goonboy
I think you have it backwards... the AUD/USD is MORE volatile than the EUR/USD. The Aussie can easily swing 3-400 pips in a day, while the EUR/USD does half that.

The Aussie is directly tied to the state of the US economy (and the the global economy in general, ie China, etc..), but more specifically to the Dow Jones Industrial Average, or the major manufacturers of the US. Australia is the only G8 nation to technically not have been hit by the recession.
Implied Volatility is higher is EUR/USD options than is AUD/USD options. Correct me if I'm wrong, but that would mean the professionals think EUR/USD is the more volatile of the two.
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