AUD/CZK is not a very popular currency pair on the Forex market. AUD/CZK represents the cross rate against the U.S. dollar. Although the U.S. Dollar obviously is not present at this currency pair, it still has a significant influence on it. This can be seen, if you combine the two charts: AUD/USD and USD/CZK. By combining these two charts, you can get an approximate AUD/CZK price chart.
The U.S. dollar has a significant influence on both currencies. For this reason it is necessary to take into account the U.S. major economic indicators for the correct prediction of a future course of this financial instrument. These indicators include: the discount rate, GDP, unemployment, new created workplaces indicator and many others. It is necessary to note that AUD and CZK can respond differently towards the changes in the U.S. economy, therefore, AUDCZK currency pair may be a specific indicator reflecting changes within the two currencies.
The Czech Republic is one of the most advanced industrialized countries of the central Europe. The country is one of the most prosperous and stable ones among all the countries of the region. Czech Republic has a high rate of personal income, which is provided by a high level of economic development.
The main sectors of Czech Republic economy are: machinery, iron and steel production, chemical industry, electronics, beer production and agriculture. The most developed economic sector is the automotive industry. Czech Republic has one of the highest rates of car production in the world, most of which is exported. In addition, the Czech Republic is one of the leading exporters of beer and shoes. In addition, significant portion of Czech export is the variety of chemical products: tires, synthetic fibers, etc. The main trade partners of the Czech Republic are Germany, Russia, Slovakia and Austria. The Czech Republic is one of the leaders in Europe in sphere of electricity production, due to the wide range of possibilities to product the electric power: nuclear, thermal, hydro, and solar and wind power.
This trading instrument is relatively illiquid compared it with such major currency pairs as: EUR/USD, USD/CHF, GBP/USD and USD/JPY. Therefore, when you make an analysis for the financial instrument, you should primarily focus on the currency pairs that include the U.S. dollar.
If you trade cross rates, it is necessary to remember that brokers usually set a higher spread for this currency pair than for more popular ones. So before you start working with cross rates, learn carefully the conditions offered by the broker to trade with specified trading instrument.