20 Apr 2021 03:40
AUD/SEK is not a very popular currency pair on Forex. AUD/SEK represents a cross rate against the U.S. dollar. Although the U.S. dollar is not obviously presented within this currency pair, it still has a significant influence on it. Thus, by combining AUD/USD and USD/SEK price charts, you can get an approximate AUD/SEK 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 the future course of this financial instrument. These indicators include: the discount rate, GDP, unemployment, new created workplaces indicator and many others. Is necessary to note that AUD and SEK can respond differently towards changes in the U.S. economy, therefore, AUD/SEK currency pair can serve as specific indicator reflecting changes within the two currencies.
Sweden is one of the leading economies in the world, which is far ahead of its nearest neighbors: Denmark, Norway, and Finland. Sweden was able to demonstrate an exceptional economic performance due to high professional level of its working population and large reserves of mineral resources. The country is rich in iron ore and nonferrous metals. In addition, Sweden has significant stocks of timber and is one of the largest hydroelectricity producers.
Sweden is the biggest manufacturer of engineering products, as well as the largest supplier of iron ore, steel, and paper. The major part of Sweden's production is shipped to foreign markets. However, Swedish economy is highly dependent on the volume of exports, the decline of which can weaken the economy severely. It is worth noting that Sweden is heavily dependent on global prices for the most popular energy resources - oil and gas. Thus, significant increases in prices for these energy sources can hurt the Swedish economy greatly and affect the value of the Swedish krona.
This trading instrument is relatively illiquid compared with major currency pairs such as EUR/USD, USD/CHF, GBP/USD, and USD/JPY. Therefore, when analyzing AUD/SEK, focus primarily on those 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 the cross rates, learn carefully the conditions offered by the broker to trade with specified trading instrument.