Australian Dollar / U.S. Dollar - AUD/USD

Pivot points are a technical indicator that traders use to predict upcoming areas of technical significance, such as support and resistance. They're calculated by averaging the high, low and closing prices of a previous period. That could be a day, a week or a month.

If a market is trading above its previous pivot point (known as P), it is seen as a bullish signal. If it is below, it is bearish.

AUD/USD is the exchange rate between the US dollar and the Australian dollar, and is a popular forex pair among currency traders. AUD is the base currency in the pair, while USD is the quote – meaning AUD/USD tells you how many US dollars you need to buy a single AUD.

The market is called the ‘Aussie’ by FX traders. The Australian dollar is one of the best-known ‘commodity currencies’, as the Australian economy is driven in large part by exporting iron ore, gas, coal and gold. As such, low commodity prices can see the pair fall, while it may rise when commodity prices are high.