Aussie Dollar the One to Watch on the Currency Strength Indicator and Currency Matrix
The Aussie dollar is the one to watch right now. It stands out on the currency strength indicator. AUD ranks high against majors. This signals relative strength. The currency matrix confirms it with bold colors across pairs.
In the London forex session, the pair to watch was the AUD/CAD with the Aussie dollar rising strongly and the Canadian dollar falling equally strongly on the faster timeframes of the currency strength indicator, with the currency matrix indicator confirming this sentiment.
Why AUD Leads the Pack
Commodity links drive AUD performance. Rising risk appetite boosts it. Volume price analysis (VPA) supports the move—high volume on up candles shows conviction. Quantum’s strength indicator and matrix on MT5 or NinjaTrader highlight AUD extremes clearly.
Trading Insights for AUD Focus
Pair AUD with weaker currencies like JPY or EUR for trends. Watch AUD/USD or AUD/JPY. Pullbacks with volume buying offer entries. Anna Coulling’s VPA approach uses relational tools to spot leaders early.
Aussie dollar strength creates opportunities. Quantum indicators make tracking it simple and reliable. Stay focused on AUD for potential high-probability trades.
The Carry Trade Explained: Why AUD Is a Classic Choice
The carry trade is a popular forex strategy. Traders borrow in a low-interest currency. They invest in a high-interest one. The goal: Earn the interest differential (carry). Plus potential capital gains. The Australian dollar (AUD) is a favorite for carry trades.
How the Carry Trade Works
Find a rate gap. Japan (JPY) often has near-zero rates. Australia (AUD) typically higher. Borrow JPY cheap. Convert to AUD. Earn positive carry daily. Hold for appreciation. Popular pairs: AUD/JPY or NZD/JPY.
In risk-on markets, carry thrives. Growth optimism supports high-yield currencies.
Why AUD Fits the Carry Trade
AUD offers attractive yields from RBA policy. Commodity links add upside—strong exports boost it. Traders long AUD/JPY for carry + momentum. Volume price analysis (VPA) confirms—high volume up moves show conviction.
Quantum currency strength indicator ranks AUD high in carry-friendly periods.
Risks of the Carry Trade
Carry unwinds fast in risk-off. Yen surges as safe-haven. AUD weakens on commodity drops. Losses amplify from leverage. VPA warns—low volume rallies signal fading strength. Divergence spots reversals early.
Trading Carry with VPA and Quantum Tools
Enter on volume-confirmed trends. High volume in AUD/JPY up = conviction long. Pullbacks on low volume = add positions. Exit on divergence or high volume yen buying. Quantum Trend Monitor aligns direction.
Anna Coulling’s VPA approach turns carry into disciplined strategy. Quantum tools make spotting setups reliable.
The carry trade rewards patience in risk-on. AUD’s yield and drivers make it classic. VPA with Quantum indicators delivers the edge. Trade smart—manage unwind risks.
By Anna Coulling