16 Apr 2021 23:59
AUD/NOK is not a very popular currency pair in the Forex market. It is the cross rate against the U.S. dollar. Although the U.S. dollar obviously is not present in this currency pair, it still has a significant impact on it. This can be seen if you combine two charts ― AUD/USD and USD/NOK. By combining these two charts in the same price chart, you can get an approximate AUD/NOK 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 prediction of a future course of this financial instrument. These indicators include the discount rate, GDP, unemployment, new vacancies and many others. It is worth noting that the discussed currencies could respond to U.S. economic changes with different speed. Therefore, the AUD/NOK pair may be a specific indicator of changes in these currencies.
Norway is one of the leading industrial-agrarian countries. The country is number one in terms of quality of life and personal income level. This Scandinavian country is the third largest producer and exporter of oil and gas. The main source of Norway’s income is the export of energy resources. In addition, Norway is a leader in electrometallurgy, electrical engineering, mechanical engineering, mining as well as processing of seafood, which is in high demand worldwide, especially in European countries. In addition, it is the largest manufacturer of offshore drilling platforms for oil and gas.
This trading instrument is relatively illiquid in comparison with major currency pairs, such as EUR/USD, USD/CHF, GBP/USD, and USD/JPY. Therefore, when you make a forecast for the financial instrument, you should primarily focus on those currency pairs that include the U.S. dollar in tandem with each of the considered currencies.
If you trade cross rates, it is necessary to remember that brokers usually set a higher spread than more popular currency pairs, so before you start working with the cross rates, carefully learn the conditions offered by the broker to trade a preferred instrument.