Trading AUD/MXN

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James Barra
James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.
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Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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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.

Best AUD/MXN Brokers

Based on our tests, these 1 brokers stand out as the best for trading AUD/MXN:

Click a broker for details
  1. 1
    InstaTrade

    Ratings
    2.5 / 5
    3 / 5
    3 / 5
    3 / 5
    3.5 / 5
    3.5 / 5
    3.5 / 5
    3.3 / 5
    4.8 / 5
    4.4 / 5

    $1
    0.01
    1:1000
    BVI FSC
    FISP, CFDs, Forex, Stocks, Indices, Commodities, Cryptos, Futures
    InstaTrade Gear, MT4
    Visa, Mastercard, Wire Transfer, Credit Card, Debit Card, Bitcoin Payments, Ethereum Payments
    USD, EUR, RUB

Here is a summary of why we recommend these brokers:

  1. InstaTrade - InstaTrade, based in the British Virgin Islands, is an online broker specializing in fixed income structured products and active trading through CFDs. Its zero-spread accounts, excellent research notably through InstaTrade TV, and access to the popular MT4 alongside its own web-accessible InstaTrade Gear, make it an attractive option for short-term traders at every level.

InstaTrade

"Although InstaTrade offers active trading on a comprehensive platform, it stands out with its fairly unique Fixed Income Structured Product (FISP), providing passive investment opportunities with up to 50% returns in 6 months if conditions are met. "

Christian Harris, Reviewer

InstaTrade Quick Facts

Demo AccountYes
InstrumentsFISP, CFDs, Forex, Stocks, Indices, Commodities, Cryptos, Futures
RegulatorBVI FSC
PlatformsInstaTrade Gear, MT4
Minimum Deposit$1
Minimum Trade0.01
Leverage1:1000
Account CurrenciesUSD, EUR, RUB
Currency PairsAUD/MXN, EUR/AUD, GBP/HUF, GBP/ZAR, USD/INR

Pros

  • Despite an average investment offering of around 300 assets, InstaTrade offers a particularly strong suite of currency pairs, catering to advanced traders seeking opportunities in volatile exotics.
  • VPS hosting caters to algo trading strategies with a dedicated physical server providing rapid execution speeds as low as 9 milliseconds.
  • InstaTrade TV, consisting of video interviews and valuable market insights spanning equities, cryptos and more, helps identify opportunities and inform short-term trades.

Cons

  • InstaTrade sports one of the most cluttered websites and client cabinets in the industry, potentially overwhelming new traders, especially compared to XTB’s intuitive trading journey and resources.
  • Profits are only guaranteed in the FISP if investors do not reach the 50% profit level and attract other users with a total sum of $4 for each dollar in compensation.
  • InstaTrade’s growing educational tools provide valuable information for aspiring traders, but still trail category leaders like eToro with no structured course based on experience level.

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Pros Of Trading AUD/MXN

Cons Of Trading AUD/MXN

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:

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:

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.

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.