GBPAUD is a cross pair made up of the British pound and the Australian dollar, characterized by fast and sharp price fluctuations.
The British pound (GBP) is the official currency of the United Kingdom of Great Britain and Northern Ireland and one of the world's major reserve currencies. The pound is also accepted as legal tender in the British Crown Dependencies and overseas territories. The UK economy is focused on the service sector, industry, and raw materials (oil and gas). The service sector is considered to be the main one, which accounts for almost 30% of GDP, primarily financial, brokerage and banking services, famous offshore companies in the British overseas territories, insurance and consulting services. The UK's main trading partners are the EU and the US.
Australian dollar is the official currency of Australia. AUD is considered a commodity currency since a significant part of the income of the Australian economy comes from the export of energy, raw materials, and minerals. In this regard, the Australian dollar largely depends on world prices for gold, oil, gas, and agricultural products.
The GBPAUD pair is characterized by high volatility and unpredictability. GBPAUD fundamental analysis is considered quite complex. Most of all, GBPAUD correlates with AUDUSD. So when assessing the fundamental data that affect the pair's price, one should also pay attention to US macroeconomic indicators, such as the federal funds rate, GDP, inflation, and labor market data. However, traders need to remember that the national currencies that make up the pair react with different speeds to the release of US economic indicators.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
