Home AUD/USD Should Become A Major Pair

AUD/USD Should Become A Major Pair

The current global crisis has shown us that the dollar is the safe haven currency. The Swiss Franc lost its status. On the other hand, Australia’s economy hasn’t been badly affected by this crisis. The Aussie should replace the Swissy in the big league of majors.

Traditionally, there are four major pairs: EUR/USD, USD/JPY, GBP/USD and USD/CHF. These are currency pairs that include the American dollar, the currency behind the biggest economy in the world, and a huge superpower.

The Euro sure is a major currency – it’s used by 16 nations, including Germany and France, which are great economies. EUR/USD is the most popular pair in the world.

USD/JPY is also a very popular pair. Despite the long recession, Japan’s economy is still huge. The Yen’s popularity can be seen through the popularity of the EUR/JPY pair.

The British empire ceased to exist a long time ago, but the British Pound is very popular. With London being the place with the most forex transactions, and with the exciting nature of the cable, the British Pound still deserves to be one of the major currencies.

And what about the Swiss Franc? I find it quite boring. Switzerland doesn’t provide too many economic indicators. In addition, the Swiss Franc lost its status as the safe haven currency in the current economic crisis. The Dollar and the Yen are bought in times of trouble.

In Wikipedia’s table of most traded currencies, the Swiss Franc holds 6.8% of trade. The Australian dollar holds 6.7%. The research, made by the  Bank for International Settlements, was made in December 2007, about a year ago.

Australia’s economy managed to avoid recession – only one quarter of contraction. It’s strong ties with China make it a very strong economy, with a very strong currency.  Also the soaring price of gold helps the Aussie.

I’ve written here many times about the strength of the Australian economy. Regarding forex trading, I found the AUD/USD to be the most predictable currency pair.

So,  I have a strong notion that the Australian dollar passed Swiss Franc in trade volume.

I’m waiting anxiously for a fresh release  of forex volume trade, and I believe that it will put Australia in the major league, leaving the Swiss Franc out.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.