06 May 2021 12:13
The AUD/HUF is not very popular currency pair on Forex. AUD/HUF is the cross rate. Although it does not include the U.S. currency, the dollar still has a significant influence on it. This can be seen when you combine two charts: the AUD/USD and USD/HUF. It will be an approximate AUD/HUF chart.
The U.S. dollar has a significant influence on both currencies. For this reason it is necessary to take into account the major U.S. economic indicators for the correct projection of a further trend of this financial instrument. The indicators include: the discount rate, GDP, unemployment, new jobs and others. It is worth mentioning that the currencies can show different responses to changes in the U.S. economy, therefore, the AUD/HUF currency pair can be considered to be a specific indicator of the price velocity of these currencies.
The exchange rate of this trading instrument was attached to the euro since its introduction in most countries of the European Union until 2008, when Hungary refused to anchor its national currency’s exchange rate to the euro due to having no longer benefit.
Hungary is a country with a big share of foreign capital. That is why the Hungarian economy is highly dependent on the organizations and countries operating in its territory.
Hungary is an advanced industrial Central European country. The main economic sectors in Hungary are engineering, metallurgy and chemical industry. Also Hungary has a very developed agriculture, a significant proportion of which are gardening and wine-making industries. Much of the products are exported abroad. A significant proportion of Hungarian income is international tourism. Millions of foreigners visit this country annually, because they attracted by the nature of the country and its ancient traditions and architecture. Hungary's main trading partners are EU countries and Russia. For this reason, when you assess the further course of the Hungarian forint, you should pay special attention to economic indicators of these regions.
This trading instrument is relatively illiquid if we’ll compare it with major currency pairs, such as: EURUSD, USDCHF, GBPUSD and USDJPY. Therefore, when you make a prognosis for the financial instrument, you should primarily focus on those currency pairs that include a U.S. dollar.
If you trade cross rates, it is necessary to remember that brokers are usually set a higher spread than more popular currency pairs, so before you start working with the cross-rates, it should be carefully acquainted with the conditions offered by the broker to trade with the specified trading instrument.