Trading AUD/MXN
The AUD/MXN is a popularly traded exotic forex pair. It reflects how much the base currency, AUD, is worth against the counter currency, MXN. The Australian dollar is the fifth most traded currency with relative stability while the Mexican peso promises liquid access to South America which has seen rapid market growth in recent years. This article is a guide to day trading the AUD/MXN, from tips and risks to live price charts and exchange rate history.
AUD/MXN Trading Brokers
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1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
NinjaTrader
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Stocks, Options, Commodities, Futures, CryptoNinjaTrader Desktop, Web & Mobile, eSignalACH Transfer, Debit Card, Wire TransferUSD -
3
OANDA USCFDs are not available to residents in the United States.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)OANDA Trade, MT4, TradingView, AutoChartistWire Transfer, Visa, Mastercard, Debit Card, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD -
4
IGForex trading involves risk. Losses can exceed deposits.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:30 (Retail), 1:250 (Pro)FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOBCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentralPayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit CardUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD -
5
Interactive Brokers
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1001:50FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMAStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, CryptocurrenciesTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentralCheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit CardUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF -
6
Videforex20% to 200% Deposit Bonus
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
7
Plexytrade120% Cash Welcome Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$500.011:2000UnregulatedCFDs, Forex, Indices, Stocks, Commodities, CryptoMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD, EUR -
8
Sage FX$1,500 trading competition
$100.01 Lots1:500PendingForex, indices, cryptosTradeLockerCredit Card, Visa, Mastercard, Bitcoin Payments, Ethereum PaymentsUSD, EUR, GBP, CAD, AUD -
9
BinaryCent20% - 200% deposit bonus
$250$0.011:500VFSCCFDs, Forex, Stocks, Cryptos, Options, CommoditiesOwnVisa, Mastercard, Debit Card, Credit Card, Skrill, WebMoney, Neteller, Bitcoin Payments, Wire Transfer, Perfect Money, Ethereum PaymentsUSD -
10
Plus500 USWelcome Deposit Bonus up to $200Trading with leverage involves risk.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.0 LotsCFTC, NFAFutures on Forex, Commodities, Cryptos, Indices, Interest RatesWebTrader, AppACH Transfer, Wire Transfer, Debit Card, Mastercard, VisaUSD
Here is a short summary of why we think each broker belongs in this top list:
- FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
- NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
- OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
- IG - IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.
- Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
- Videforex - Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.
- Plexytrade - Plexytrade presents major, minor, and exotic forex pairs for trading, with leverage reaching 1:2000 and raw spreads starting from 0.0 - an enticing proposition for advanced traders seeking gains from minor price shifts. However, the downside lies in the limited selection, with only 41 currency pairs available, significantly fewer than the 100+ forex assets at IG.
- Sage FX - Trade 7 major, 21 minor and 29 exotic forex pairs with high leverage and a choice between STP or ECN accounts. Support is available around the clock and the TradeLocker forex software is provided.
- BinaryCent - Trade 24 forex pairs via binary options. Such a small range of currency pairs is not that unusual among binary options brokers, and BinaryCent's high payouts up to 95% compensate for the lack of range.
- Plus500 US - Plus500 US offers futures trading on a small selection of 13 currencies, including popular pairs like the EUR/USD and GBP/USD. Day trading margins are competitive, starting from $40, while the educational resources do an excellent job of breaking down the basics of forex futures for new traders.
Trading AUD/MXN Comparison
| Broker | Forex Assets | EUR/USD Spread | Forex App Rating | Minimum Deposit | Regulator |
|---|---|---|---|---|---|
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80+ | 1.2 | / 5 | $100 | NFA, CFTC |
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50+ | 1.3 | / 5 | $0 | NFA, CFTC |
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65+ | 1.6 | / 5 | $0 | NFA, CFTC |
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80+ | 0.8 | / 5 | $0 | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB |
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100+ | 0.08-0.20 bps x trade value | / 5 | $0 | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA |
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35 | Floating from 0.1 pips | / 5 | $250 | - |
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40+ | 0.7 | - | $50 | Unregulated |
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57 | 0.9 | - | $10 | Pending |
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25+ | Floating | - | $250 | VFSC |
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13 | 0.75 | / 5 | $100 | CFTC, NFA |
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| GBPUSD Spread | 1.3 |
| EURUSD Spread | 1.2 |
| EURGBP Spread | 1.4 |
| Total Assets | 80+ |
| Leverage | 1:50 |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
Cons
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
- Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
NinjaTrader
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer
NinjaTrader Quick Facts
| GBPUSD Spread | 1.6 |
|---|---|
| EURUSD Spread | 1.3 |
| EURGBP Spread | 1.6 |
| Total Assets | 50+ |
| Leverage | 1:50 |
| Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
| Account Currencies | USD |
Pros
- Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract
- You can get thousands of add-ons and applications from developers in 150+ countries
- NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
Cons
- There is a withdrawal fee on some funding methods
- The premium platform tools come with an extra charge
- Non forex and futures trading requires signing up with partner brokers
OANDA US
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
OANDA US Quick Facts
| GBPUSD Spread | 3.4 |
|---|---|
| EURUSD Spread | 1.6 |
| EURGBP Spread | 1.7 |
| Total Assets | 65+ |
| Leverage | 1:50 |
| Platforms | OANDA Trade, MT4, TradingView, AutoChartist |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD |
Pros
- The broker offers a transparent pricing structure with no hidden charges
- The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
- OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC
Cons
- It's a shame that customer support is not available on weekends
- There's only a small range of payment methods available, with no e-wallets supported
- The range of day trading markets is limited to forex and cryptos only
IG
"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."
IG Quick Facts
| GBPUSD Spread | 0.9 |
|---|---|
| EURUSD Spread | 0.8 |
| EURGBP Spread | 0.9 |
| Total Assets | 80+ |
| Leverage | 1:30 (Retail), 1:250 (Pro) |
| Platforms | Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD |
Pros
- As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
- IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
- The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met
Cons
- Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
- Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
- IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Interactive Brokers Quick Facts
| GBPUSD Spread | 0.08-0.20 bps x trade value |
|---|---|
| EURUSD Spread | 0.08-0.20 bps x trade value |
| EURGBP Spread | 0.08-0.20 bps x trade value |
| Total Assets | 100+ |
| Leverage | 1:50 |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
Cons
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
Videforex
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| GBPUSD Spread | Floating from 0.1 pips |
| EURUSD Spread | Floating from 0.1 pips |
| EURGBP Spread | Floating from 0.1 pips |
| Total Assets | 35 |
| Leverage | 1:500 |
| Platforms | TradingView |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- The support times are fast and reliable based on tests - few brokers offer 24/7 multi-lingual video support
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent
- Videforex regularly runs trading contests, offering great practice opportunities and cash prizes to beginners and experienced traders
Cons
- No MetaTrader 4 integration
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
Plexytrade
"Plexytrade is a newcomer in the brokerage scene with attention-grabbing features like 1:2000 leverage, zero spreads on select instruments and fast execution speeds of less than 46 milliseconds. However, the absence of regulation is a significant concern, while the non-existent research and educational tools place it far behind industry frontrunners."
Plexytrade Quick Facts
| Bonus Offer | 120% Cash Welcome Bonus |
|---|---|
| GBPUSD Spread | 0.8 |
| EURUSD Spread | 0.7 |
| EURGBP Spread | 1.1 |
| Total Assets | 40+ |
| Leverage | 1:2000 |
| Platforms | MT4, MT5 |
| Account Currencies | USD, EUR |
Pros
- Despite lacking regulation, Plexytrade provides negative balance protection and reinforces safety protocols by holding client funds in segregated accounts.
- US residents are accepted as clients, distinguishing Plexytrade as one of the rare offshore brokers that cater to US-based traders.
- Plexytrade offers among the highest leverage we’ve seen, up to 1:2000, catering to advanced traders willing to forego regulatory protections.
Cons
- Plexytrade lacks regulation in major jurisdictions, significantly increasing the risks of opening an account and depositing funds.
- There are no research and educational materials, falling short of alternatives like IG, while access to the economic calendar is restricted to clients with balances of $500.
- There are no social or copy trading features for inexperienced traders to replicate the trades of more experienced investors, trailing category leaders like eToro.
Sage FX
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."
Sage FX Quick Facts
| Bonus Offer | $1,500 trading competition |
|---|---|
| GBPUSD Spread | 0.9 |
| EURUSD Spread | 0.9 |
| EURGBP Spread | 2.5 |
| Total Assets | 57 |
| Leverage | 1:500 |
| Platforms | TradeLocker |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- Ability to deposit and withdraw via Bitcoin
- Low starting deposit from $10
- Flexible accounts with STP and ECN solutions available
Cons
- Relatively narrow range of asset classes
- Not regulated by any reputable body
- Lacks educational resources and other extra features
BinaryCent
"Traders who want a reliable binary options broker with a streamlined platform and high payouts should try out BinaryCent."
BinaryCent Quick Facts
| Bonus Offer | 20% - 200% deposit bonus |
|---|---|
| GBPUSD Spread | Floating |
| EURUSD Spread | Floating |
| EURGBP Spread | Floating |
| Total Assets | 25+ |
| Leverage | 1:500 |
| Platforms | Own |
| Account Currencies | USD |
Pros
- Trade binary contracts from $0.10 allowing trading opportunities for all budgets
- Accepts a wide range of funding methods, including cryptos and e-wallets
- Simple and straightforward proprietary platform for binary options trading
Cons
- Not available to traders based in the US
- Not overseen by any reputable regulator, raising risks and reducing customer protections
- The $250 minimum deposit is higher than most binary options brokers
Plus500 US
"Plus500 US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills."
Michael MacKenzie, Reviewer
Plus500 US Quick Facts
| Bonus Offer | Welcome Deposit Bonus up to $200 |
|---|---|
| EURUSD Spread | 0.75 |
| Total Assets | 13 |
| Platforms | WebTrader, App |
| Account Currencies | USD |
Pros
- The straightforward account structure, pricing model and web platform offer an easier route into futures trading than rivals like NinjaTrader
- The Futures Academy is an excellent resource for new traders with engaging videos and easy-to-follow articles, while the unlimited demo account is great for testing strategies
- The trading app provides a terrific user experience with a modern design, a clean layout and mobile-optimized charts
Cons
- Despite competitive pricing, Plus500 US lacks a discount program for high-volume day traders, a scheme found at brokers like Interactive Brokers
- The proprietary platform is user-friendly but lacks advanced technical analysis tools found in third-party solutions like MetaTrader 4
- Although support response times were fast during tests, there is no telephone assistance
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Pros Of Trading AUD/MXN
- Volatility – Exotic pairs, like the AUD/MXN, have high volatility. Frequent price changes provide day traders with many opportunities to turn a profit. The AUD and MXN are also commodity currencies whose relative strength depends on the success of their export-based economies.
- Predictability – Exotic pairs can be easier to predict than majors or minors. In the case of AUD/MXN, the influence of the Australian dollar can overpower the impact of the Mexican peso. Those that already trade the AUD/TRY and USD/MXN may find it easier to get up to speed with the AUD/MXN.
- Liquidity – The Mexican peso experiences substantial liquidity due to its high-interest rates, commercial activity and trade agreements with the US. This can help ensure spreads remain competitive.
- High-interest rates – Due to high-interest differentials, both the AUD and MXN can serve as carry trades in other currency pairs such as AUD/JPY and USD/MXN.
Cons Of Trading AUD/MXN
- Understanding – Generally, there is less market information and publicly available future forecasts on exotic pairs compared to popular majors and minors. For those that live outside of the respective countries, it can be harder to gauge the economic environment and geopolitical landscape.
- Expensive – Forex trading platforms tend to charge higher prices due to the risky nature of exotic pairs. As a result, bid-ask spreads may be wider versus majors.
- Availability – Not all brokers offer exotic pairs such as the AUD/MXN. Traders may need to shop around to find the right online broker that offers the currency pair.
- Volatility – Forex trading is already a risky investment vehicle, but exotics can prove particularly volatile. Whilst this can mean serious profits, it can also lead to large losses. Users need to ensure they take a careful approach to risk management.
AUD/MXN Day Trading Strategy
Timing
While forex trading runs 24/5, certain periods offer higher levels of liquidity and volatility. Trading during these times can help ensure profits cover costs.
The Australian trading session typically runs between 23:00 and 05:00 GMT while key Mexican trading times run from 14:30 to 21:00 GMT. Because these sessions don’t overlap, there isn’t an obvious ideal trading window. With that said, the Australian trading session typically sees high levels of activity and trading 30 minutes to 60 minutes before economic releases or 1 to 3 hours after announcements also offers decent liquidity.
Risk Management
Due to the volatile nature of exotic forex pairs, it’s key that traders take measures to manage risk. Not risking more than 1 to 2% of your total capital in a single trade, for example, can help to limit your risk exposure. So when looking at AUD/MXN technical charts, buy and sell rates and future forecasts, it’s important to factor in where you’ll place your risk parameters.
USD/MXN
For traders unfamiliar with the AUD/MXN, the USD/MXN is an interesting pair to keep an eye on. Live charts, price predictions and market data are more readily available on the USD/MXN and the pair can help you can understand the Mexican peso component.
News
AUD/MXN traders should keep on top of financial and economic news announcements. For example, reports on inflation rates, GDP data and export production can all impact the price of the AUD/MXN. Particularly useful online resources include Bloomberg, IG, Investing.com and Yahoo Finance. These sources offer live price charts, historical exchange rate data and market sentiment.
Understanding The AUD
It is important to understand the AUD to MXN exchange rate history and the influences on price movement.
In 1966, the Australian dollar replaced the Australian pound and in the following year, it was pegged to the US dollar until 1983 when it became a free-floating currency.
Key influences on the currency include:
- Commodity prices – The Australian dollar is a commodity currency, so the prices of its main exports like metals and grains are strongly tied to its value. Australia primarily trades with Asia’s developing economies such as China and India.
- Central bank policies – The Reserve Bank of Australia makes important decisions on interest rates and inflation. Keeping an eye on monetary policy announcements will help you make future forecasts about the value of the Australian dollar.
- Balance of payments – Australia’s account deficit is an important detail to analyse as it informs of the country’s trade balance, income payments and other transactions between its economy and other countries. A deficit in the country’s balance of payments can harm the strength of the currency.
Understanding The MXN
Before the late 18th century, the Mexican peso was the benchmark for all North American countries such as the United States. The country continued to use the peso after gaining independence from Spain in 1821. The Bank of Mexico was established in 1925, which was granted the right to print banknotes. The Nuevo peso, which is the MXN we know today, was created after the oil crisis in the 1970s.
Key influences on the currency include:
- Proximity with the United States – The trading relationship between Mexico and the US is key as stable commercial interactions contribute to MXN’s liquidity. For context, in 2019, the US exported $256 billion of goods to Mexico and imported $358 billion worth of goods, which added significant liquidity to the USD/MXN.
- Oil prices – As the ninth-largest oil producer in the world, Mexico’s economy has historically been dependent on oil. It also shows a tight correlation with other Latin-American commodity-based currencies like the Brazilian real and Colombian peso. The weekly U.S. oil inventory can also have a strong effect on the USD/MXN.
- Central bank policies – The Bank of Mexico makes decisions on the country’s interest rates and other important factors that can increase or depreciate the value of the Mexican peso.
Linked Currency Pairs
Traders should take note of relevant currency correlations with the AUD/MXN. Currency pairs don’t move independently of each other. The success or failure of one pair can be reflected in another. For example, we previously mentioned the correlation between the AUD/MXN and the USD/MXN.
- Positive correlation – This is when pairs move in the same direction as each other. The AUD/USD, GBP/USD, and EUR/USD pairs are positively correlated. This is a result of the US dollar being the counter currency.
- Negative correlation – This is when forex pairs move in the opposite direction. The USD/CHF, USD/JPY, and USD/CAD are good examples. They are negatively correlated because the US dollar is the base currency.
Final Word On Trading AUD/MXN
The AUD/MXN pair has promising qualities that may allow traders to generate profits from market volatility. However, as an exotic pair, it is more suited to experienced traders. We’d recommend opening an account with a regulated forex broker that offers all the tools and features needed to make accurate AUD/MXN forecasts.
FAQ
How do I convert 1 AUD to MXN?
The AUD to MXN exchange rate is continuously moving. Head to one of many online currency convertors to buy and sell AUD to MXN.
Should I invest in AUD/MXN?
As a popular exotic forex pair, it has good attributes that make for an interesting investment vehicle. With that said, language barriers, volatility risks and limited information online can make it challenging versus other established pairs.
How can I trade AUD/MXN?
Firstly, you need to open an account with a broker that offers the AUD/MXN. It’s also important to check spreads and commissions as they tend to be more expensive than on majors or minors. Other factors like security, regulation, plus deposit and withdrawal methods are useful considerations.
What is the meaning of AUD/MXN?
This forex pair consists of the base currency, AUD and the counter currency, MXN. This shows how much the AUD is worth against the MXN. For example, if an AUD/MXN quote is 16.08, this means 16.08 MXN is worth 1 AUD.
What affects the AUD vs MXN rate?
Each currency is affected by its central bank’s monetary policies. On top of that, as a commodity currency, The Australian dollar is highly affected by global commodity prices. Mexico is also a key oil producer, which means changes in global oil prices can either positively or negatively impact the strength of its currency. It’s also worth keeping abreast of relations and trade agreements between the US and Mexico.