Trading AUD/MYR

The AUD/MYR currency pair is a popular forex asset. The Australian Dollar represents one of the world’s largest economies and is the fifth most traded currency. The Malaysian Ringgit is one of the strongest currencies on the Asian continent and is susceptible to changes in emerging markets and political sentiment.

This guide will break down the history of the AUD/MYR. We also explain how to trade the pair, looking at factors that influence the AUD vs. MYR exchange rate and principles for successful forex trading. In addition, we list the top brokers for trading AUD/MYR in 2024.

AUD/MYR Trading Brokers

1. 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.
2. 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.
3. 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.
4. 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.
5. 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/MYR Comparison

Trading AUD/MYR 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
	80+	0.8	4.9 / 5	$0	FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA	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

#1 - OANDA US

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Review

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

• There's a strong selection of 68 currency pairs for dedicated short-term forex traders
• Beginners can get started easily with $0 minimum initial deposit
• 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

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#2 - Vantage

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Review

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

• The broker has recently made efforts to expand its suite of CFDs providing further trading opportunities
• The low minimum deposit of $50 and zero funding fees make this broker a great choice for new traders
• There’s an excellent suite of day trading software, including the award-winning platforms MT4 and MT5

Cons

• The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
• It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
• Unfortunately, cryptos are only available for Australian clients

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#3 - IC Markets

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Review

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

• 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.
• IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.

Cons

• The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
• Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
• Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.

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#4 - AvaTrade

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Review

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

• WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
• Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
• The broker offers reliable 24/5 multilingual customer support with fast response times during testing

Cons

• Traders from the US are not accepted
• 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
• A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners

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#5 - FOREX.com

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Review

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

• With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
• 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.

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.
• There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.

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AUD/MYR Explained

Firstly, what does the AUD/MYR mean? It is simply the quote for the Australian Dollar vs. Malaysian Ringgit exchange rate. The Australian Dollar is the base currency while the Malaysian Ringgit is the counter currency.

Note, the Ringgit is often unofficially referred to as the Malaysian Dollar.

Live Chart

Why Trade AUD/MYR?

With so many daily forex options, why should you focus your attention on the AUD/MYR?

• Recovery – The Ringgit has recently weakened, particularly against the AUD. This is due in part to Australian policies and a weakening of the yuan. Interestingly though, Malaysian economists expect the currency to recover in the third quarter of 2022.
• Volatility – The value of the Ringgit is susceptible to changes in global emerging markets and political sentiment in Malaysia. The AUD is also uncommonly counter-cyclical and volatile. As a result, there is plenty of pip movement and opportunities to profit from steep price fluctuations.
• Related to commodity prices – Both AUD and MYR are driven, in part, by the price of commodities. Malaysia is an exporter of oil and natural gas, so the Ringgit has some correlation to commodity prices. The strength of the AUD is also closely tied to its exposure to Asia and the commodity cycle. AUD is a popular alternative for traders looking to go long on commodity exposure and/or Asian demand.
• Availability of resources – Economic data that you can use to help with an AUD v MYR 30 days forecast, for example, can easily be found online, for free. Australia’s Bureau of Agricultural and Resource Economics and Sciences (ABARES) produces regular reports on crop planting, weather, harvests, mine output, and money in metal prices, all of which can affect the AUD exchange rate. Technical analysis today is also easier than ever before. This is because you can analyze graphs and candlestick charts with customized indicators and sophisticated trading tools.

AUD To MYR History

The Ringgit has been Malaysia’s official currency since 1975. Originally, MYR was pegged to the USD, but over time the peg was removed. It was then reinstated in 1997 when Asia suffered a financial crisis. Because of the surge in capital outflows during the crisis, trading Ringgit outside of Malaysia was banned. Today, that peg to the US Dollar has once again been removed, and the Ringgit now floats against many large world currencies on the forex market.

The Malaysian central public bank, the Bank Negara Malaysia (BNM), usually has a policy of keeping the MYR exchange rate down instead of supporting it. However, the MYR has lost strength in recent years because of Covid-19 and political uncertainty. Interest rates had a projected hike of up to 3.2% in 2022.

MYR accounts for about 0.1% of daily turnover in the forex market and ranks 34th in trading activity among the world’s currencies.

The Malaysian Ringgit is made up of 100 sen and is issued in denominations of 1, 5, 10, 20, 50, and 100. The 500 and 1,000 denominations are not usable, even though some are still in circulation.

Note, the AUD/MYR reached an all-time high of 3.44 in July 2017; and an all-time low of 2.15 in October 2008.

The Malaysian Economy

Malaysia has been able to reduce extreme poverty and increase prosperity for its citizens. Its goal is to become a high-income and developed nation while making sure that everyone can live well.

The currency plays a key role in its development and understanding the drivers will help you make informed decisions when investing in the AUD/MYR.

• Malaysia exports large amounts of palm oil products, exporting the second greatest volume after Indonesia.
• The country previously relied on the production of agricultural export commodities and minerals, but now it relies on manufacturing and services.
• The Malaysian economy is now the fourth biggest in Southeast Asia after Indonesia, Thailand, and Vietnam. It is the world’s 37th largest economy.
• Economic downturns in the last few years have severely damaged the country’s investments. The country is emerging from a ‘double-dip’ recession caused by Covid-19.
• The economy of Malaysia is one of the globe’s most competitive and is very diverse and robust thanks to the export value of its high-tech products, which stands at over $90 billion.
• Malaysia has many natural resources, especially in the minerals, forestry, and agricultural sectors. Its most valuable exported resource is petroleum, with tobacco, pineapples, pepper, cocoa, timber, and rubber being vital to the economy’s health.

The Australian Economy

It is also important to understand the make-up of the Australian economy to implement an effective strategy when trading the AUD/MYR.

• In terms of GDP (measured in U.S. dollars), Australia is the 13th-largest economy.
• Farming is also a critical component, as over 2% of the GDP is tied to agriculture (and related sectors), with a large percentage of the output going outside the country.
• Among developed countries, Australia stands out for its heavy reliance on commodities. Mining (including energy) represents 11.5% of the country’s GDP, with a heavy emphasis on nickel.
• AUD is popular among forex traders for its 3 G’s – geology, geography, and government policy. Geology has provided the country with a wealth of natural resources in high demand, including oil, gold, agricultural products, diamonds, iron ore, uranium, nickel, and coal.
• Due to its geography, Australia is positioned as an ideal trading partner for many fast-growing Asian regions that have a high level of demand. The country also has a stable government and economy, a lack of intervention in the currency markets, and a Western approach to business.

Factors Driving MYR Value

Several key factors impact the MYR exchange rate:

• The cost of borrowing – Bank lending in Malaysia reached a record low of 3.40% in 2021. It had since slightly increased to 3.478% by March 2022.
• The flow of capital into and out of the country – In the long-term, Malaysia’s capital flows are projected to trend around 7800.00 Million MYR in 2023.
• The flow of exports and imports into and out of the country – Malaysia has a diversified export base, which includes natural gas, electrical appliances, electronic components, and palm oil.
• The merchandise trade balance – Malaysia’s trade balance by April 2022 was 23.5 billion MYR, a 20.4 billion MYR increase from the same month a year ago. This is 0.8 billion MYR above predictions.
• The long-term and short-term interest rate differential – Interest rates in Malaysia have been held at a record low of 1.75%. However, recent geopolitical events have pushed the projection to 2.2% and 3.2% in 2022.
• The rate of inflation set by the Bank Negara Malaysia – Bank Negara Malaysia (BNM) is responsible for managing monetary policy in Malaysia. The central bank leverages this policy on the MYR bank rate in an attempt to ensure financial and monetary stability. One key facet of sustainable growth is price stability, and in this spirit, the financial institution strides to keep inflation balanced. The monetary policy also aims to keep exchange rates stable, for example, in the AUD/MYR.
• The relative growth of the economy – In Q1 of 2022, Malaysia’s economy grew by 5% year on year, which was faster than the 3.6% growth in Q4 of 2021 and higher than the market expected, which was a 4% growth rate. This was helped by rising domestic demand as economic activity continued to normalize after Covid-19 restrictions were lifted. The Central Bank set GDP forecasts at between 5.3% and 6.3% for the remainder of 2022.

Factors Driving AUD Value

Several key drivers affect the AUD exchange rate:

• The strength of the Aussie dollar – Value is closely tied to its exposure to Asia and the commodity cycle.
• Major economic data – The release of GDP, retail sales, industrial production, inflation, and trade balances, can affect AUD.
• Australia produces relatively little in the way of manufacturing exports – Most of the country’s exports also go to the growing economies of Asia.
• Key information – Employment, interest rates (including scheduled meetings of the central bank), and the daily news flow – natural disasters, elections, and new government policies can all have significant impacts on the AUD/MYR exchange rate.
• Australia’s economy is driven by commodities – Both metals and grains, and reports on crop planting, weather, harvests, mine output, and metal prices can all move AUD. Australia’s Bureau of Agricultural and Resource Economics and Sciences (ABARES) produces regular reports on each.
• Higher commodity prices – These create recessionary (or at least inflationary) pressures in most developed economies. This can lead traders to have concerns for the health and growth of economies in Europe, North America, and Japan, which can make the Australian economy look favorable. That positions the Australian dollar as a popular alternative for traders looking to go long on commodity exposure and/or Asian resource demand while going short on countries likely to suffer due to higher input costs.

Tips For Trading AUD/MYR

Whether you are trading AUD to MYR or another currency pair, you will want to develop a good strategy to incorporate into your investing plan. This will significantly increase your chances of success when trading forex.

Several popular strategies used to trade forex could be suitable for you, depending on your experience level and personality.

The popular principles listed below are common trading tactics to help you become a successful forex investor:

1. Keep up to date with news – Day traders, in particular, need to keep up with the latest news and events that could affect a currency’s exchange rate, for example, interest rate announcements from central banks. Events from yesterday can significantly impact AUD/MYR exchange rate forecasts and market outlook.
2. Set aside funds – Assess how much capital you’re willing to risk on each trade and set your risk accordingly. See our guide to risk management for more tips.
3. Set aside time for the markets – Online trading takes time. It requires a trader to track the FX markets and spot opportunities, which can arise at any time during trading hours. Studying average historical 10-year charts, for example, can also be a great way to learn more about the AUD/MYR pair.
4. Start small – Whether you’re a beginner or experienced but investing in a new currency pair like the AUD/MYR, start small to test out a strategy. Check the current buying and selling rates before you take a position and use leverage calculators offered by the best forex trading platforms.
5. Cut losses with limit orders – Use stop losses to help manage your AUD/MYR trades. If the currency dips below a certain price, it will automatically close the trade, meaning you won’t lose more than a fixed amount.
6. Stay calm – There are times when the forex market tests nerves. As a day trader, in particular, it is important to stay calm. Decisions should be made using logic and not emotion.
7. Stick to your plan – Developing a strategy in advance is important to becoming a successful day trader. Don’t let your emotions get the best of you and abandon your strategy.

Final Word On Trading AUD/MYR

The AUD/MYR forex pair offers good opportunities for traders looking to speculate on emerging markets. While not traded in the significant volumes seen with major FX pairs, there is plenty of room to implement effective strategies.

Before you start trading AUD/MYR, make sure you understand what influences the exchange rate and strength of each economy. You will also need a top forex broker that offers excellent tools, such as live exchange rate charts, historical data, and real-time quotes to enable you to make predictions about future prices. Oanda is one popular forex platform.

FAQs

Why Has The MYR Weakened Against The AUD In Recent Years?

The Malaysian Ringgit weakened due to Covid-19, political instability, and the impact of inflation on consumers. Lower yuan rates are also a contributing factor. However, Malaysian economists predict an economic recovery. 

Is MYR Getting Stronger Against The AUD?

The MYR is forecast to continue strengthening on the back of a recovering economy, helped by stronger energy prices and higher production rates. 

Is MYR/AUD A Restricted Currency?

The MYR is often considered to be a restricted currency. Fund transfers in this currency are typically not allowed outside Malaysia, though online trading is still possible.

Why Is The AUD So Strong Against The MYR?

Several forces are driving the AUD. First and foremost, mining and export industries are on the rise, particularly with China wanting to resume normal pre-Covid-19 operations. Secondly, Australia had a record low unemployment rate of 3.9% in April 2022. 

Is The AUD Likely To Rise Against The MYR?

AUD is expected to rise in the next five years. By 2027, the AUD/MRY pair is predicted by some market commentators to go from the current 3.11 to 3.56, an increase of more than 14%.