AUD/USD explained: China, iron ore and the Aussie dollar
The Australian dollar is often called a bet on China and on the world's mood. The chart makes more sense once you know what Australia sells.
At a glance
| AUD/USD | |
|---|---|
| What it is | How many US dollars one Australian dollar buys (nickname: "Aussie") |
| Pip size | 0.0001 |
| One pip is worth | $10 per standard lot, $1 per mini, $0.10 per micro |
| Busiest hours (ET) | Asia, about 7 pm – 2 am, and the US morning, 8 am – noon |
| What moves it most | The RBA, China's economy, iron ore, risk mood, the Fed |
| Trading hours | Sunday ~5 pm ET to Friday 5 pm ET |
What moves it
- The Reserve Bank of Australia (RBA). It meets 8 times a year. Decisions come out at 2:30 pm Sydney time, which is late evening or just after midnight ET, depending on the time of year.
- Australian data. The monthly jobs report and inflation. Since late 2025 Australia publishes a full CPI every month, which used to be mostly quarterly. Most Australian data lands in the US evening.
- China. China is Australia's biggest customer. Strong or weak Chinese data, like factory surveys (PMIs) and trade numbers, can move the Aussie. Many of those also come out in the US evening.
- Iron ore and metals. Iron ore, used to make steel, is one of Australia's biggest exports. Rising or falling demand from China shows up here.
- Risk mood. When stocks are calm and rising, the Aussie often does well. In a scare, it often falls.
- The US side. The Fed and US data still matter a lot.
When it's busiest
AUD/USD has an evening shift for US traders. The Sydney and Tokyo sessions, roughly 5 pm to 2 am ET, bring Australian and Chinese news. Then the pair often picks up again in the 8 am to noon ET window when US data lands.
Australia's seasons are flipped, so its clocks move the opposite way to the US. In ET, the RBA's time can shift by up to two hours across the year. The market hours tool keeps track.
Its personality
- A mood ring for the world. It often rises on good global news and falls on bad.
- News while you sleep. Big moves can start before the US day begins. A trade left open overnight can wake up to a gap in price.
- Moderate swings. Usually a bit livelier than EUR/USD, calmer than the pound pairs.
Look at one more chart. Before a trade, open a stock index chart for a moment. If stocks are falling hard, the Aussie may have a strong headwind. Context, not a signal.
Reading it with our method
- Daily chart first. Mark the last places price turned around. Higher highs and higher lows, or lower ones?
- Trade only with that direction on your smaller chart.
- Wait for a body close past a level. Asian-hour tails often poke and pull back.
- Stop from the chart, size from the math. The lot size calculator works out the size for a 1% risk.
Our economic calendar guide shows how to spot the Australian and Chinese releases each week.
Common mistakes
- Thinking the day starts at 8 am. By then, the RBA or China may already have moved it.
- Holding through Australian jobs or CPI without knowing it's coming that evening.
- Doubling up with NZD/USD. The two often move together. Buying both is close to one bigger bet.
- Reading only the Australian news. A Fed surprise can swamp everything from Sydney.
Questions
Why does the Australian dollar follow China?
China buys a large share of what Australia exports, especially iron ore. When China's economy speeds up or slows down, demand for Australian goods, and dollars, can change.
What time does the RBA announce rates in ET?
At 2:30 pm Sydney time. That's usually between about 10:30 pm and 12:30 am ET, depending on daylight saving in both countries.
How much is a pip on AUD/USD?
$10 per standard lot. The US dollar is the quote currency, so the value is fixed.
Is AUD/USD a risk-on currency?
Often, yes. It tends to rise when markets are calm and confident and fall when they're worried. It's a tendency, not a rule.
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