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
- 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.
- Vantage - Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
- IC Markets - IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
- AvaTrade - AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
- 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.
Trading AUD/MXN Comparison
| Broker | Forex Assets | EUR/USD Spread | Forex App Rating | Minimum Deposit | Regulator | Visit |
|---|---|---|---|---|---|---|
|
65+ | 1.6 | 4 / 5 |
$0 | NFA, CFTC | Visit |
|
55+ | 0.0 | 4 / 5 |
$50 | FCA, ASIC, FSCA, VFSC | Visit |
|
75 | 0.02 | 4.8 / 5 |
$200 | ASIC, CySEC, FSA | Visit |
|
50+ | 0.9 | 4.3 / 5 |
- | ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM | Visit |
|
80+ | 1.2 | 4.9 / 5 |
$100 | NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA | Visit |
|
100+ | 0.1 | 4.7 / 5 |
$0 | FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB | Visit |
|
55+ | 1.6 | 4.7 / 5 |
$5 | ASIC, CySEC, DFSA, FSC, FSCA | Visit |
|
50+ | 0.0 | 3.6 / 5 |
$100 | ASIC, FCA, xCySEC, SCB | Visit |
|
45+ | Variable | 3 / 5 |
$0 | - | Visit |
|
60+ | 14 pips | 4.5 / 5 |
$10 | - | Visit |
|
50+ | 1.2 | 4 / 5 |
$10 | FSC, FSA | Visit |
|
70+ | 1.58 pips (Ave) | 2.5 / 5 |
$100 | FCA, CySEC, FSCA, SCB, FSC | Visit |
|
70+ | 0.2 | 3.4 / 5 |
$0 | CySEC | Visit |
|
70+ | 1.0 | 4.8 / 5 |
$0 | FCA, CySEC, KNF, CNMV, DFSA, FSC | Visit |
|
60+ | 0.6 | 5 / 5 |
$100 | FCA, ASIC, CySEC, DFSA, MAS, FSA, FSCA, FMA, EFSA | Visit |
#1 - OANDA US
Why We Chose 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.
"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."
- DayTrading Review Team
- GBPUSD Spread: 3.4
- EURUSD Spread: 1.6
- EURGBP Spread: 1.7
- Total Assets: 65+
- Leverage: 1:50
- Platforms: OANDA Trade, MT4, TradingView, AutoChartist
About OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.
Pros
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
- The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
- The broker offers a transparent pricing structure with no hidden charges
Cons
- 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
- It's a shame that customer support is not available on weekends
#2 - Vantage
Why We Chose Vantage
Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."
- DayTrading Review Team
- GBPUSD Spread: 0.5
- EURUSD Spread: 0.0
- EURGBP Spread: 0.5
- Total Assets: 55+
- Leverage: 1:500
- Platforms: ProTrader, MT4, MT5, TradingView, DupliTrade
About Vantage
Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
Pros
- It’s quick and easy to open a live account – taking less than 2 minutes
- The ECN accounts are very competitive with spreads from 0.0 pips and a $1.50 commission per side
- The broker has recently made efforts to expand its suite of CFDs providing further trading opportunities
Cons
- It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
- The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
- Unfortunately, cryptos are only available for Australian clients
#3 - IC Markets
Why We Chose IC Markets
IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team
- GBPUSD Spread: 0.23
- EURUSD Spread: 0.02
- EURGBP Spread: 0.27
- Total Assets: 75
- Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
- Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
About IC Markets
IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
Pros
- IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
- As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
Cons
- While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
- Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
#4 - AvaTrade
Why We Chose AvaTrade
AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- GBPUSD Spread: 1.5
- EURUSD Spread: 0.9
- EURGBP Spread: 1.5
- Total Assets: 50+
- Leverage: 1:30 (Retail) 1:400 (Pro)
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
About AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
Pros
- Day traders can access stable spreads and zero commissions with no hidden fees
- There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
- WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
Cons
- Traders from the US are not accepted
- A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
#5 - FOREX.com
Why We Chose 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.
"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."
- DayTrading Review Team
- GBPUSD Spread: 1.3
- EURUSD Spread: 1.2
- EURGBP Spread: 1.4
- Total Assets: 80+
- Leverage: 1:200 (Retail), 1:500 (Pro)
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
About FOREX.com
Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
Pros
- 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.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- 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
- There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
- 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.
Chart
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.