AUD/ZAR is a common currency pair on Forex. It can serve as the cross rate against the U.S. dollar. Although the U.S. dollar is not obviously present in this currency pair, it has a pronounced impact on it. Thus, by combining the AUD/USD and the USD/ZAR price charts, it is possible get an approximate AUD/ZAR chart.
In order to make the correct analysis of the future price trend, pay the utmost attention to the changes in the U.S. dollar rate as it has a significant influence on both AUD and ZAR. It should be noted that the mentioned above currencies can respond differently towards the changes in the U.S. dollar rate. Thus, the AUD/ZAR currency pair can serve as a peculiar indicator of the currencies changes.
South African rand is widely-spread currency which can be found in great majority of trading operations. South Africa is the richest country in Africa due to great amount of the mineral deposits. South Africa has also the largest stock exchange which can be compared to the world largest stock exchanges. The country’s economy is based on the minerals export and extraction.
South Africa is a large producer of precious stones and metals, including gold and diamonds. In addition, the country is the major car manufacturer in Africa, contributing most to the region’s exports. South Africa is almost self-sufficient in providing all the necessary raw materials. The country’s exchange rate can be greatly affected by prices for precious stones and metals and machinery construction industry.
When trading cross-rate, remember that brokers usually set a higher spread for such currencies pairs compared to others. For this reason, read and understand the terms of trade suggested by the broker to trade this instrument.