Australia switched to a decimal monetary system in 1963. Previously, the Australian pound was used in the country. It was based on the English monetary system, which significantly complicated the calculations.
Australian dollar depends on the price of raw materials. AUD is sensitive to changes in the price of key export products. The economy of Australia is strongly connected with the countries of Southeast Asia, New Zealand, Japan and China. The main export products: coal, wool, oil, metals and food.
Hungarian forint began to be used since 1946. The currency showed a stable exchange rate until 1980. After the country’s economy lost stability, the Hungarian currency began to rapidly devalue. Annual rates of inflation reached 35% per year.
Hungary is an exporter of industrial and agricultural products. The country is part of the EU, so in the long-term HUF will be replaced by EUR. It is predicted that the transition to a common European currency will occur in 2020.
AUD stability is backed by the power of the Australian economy. The country is one of the exporters of gold. Therefore, it demonstrates stability even in the conditions of global crisis phenomena that adversely affect other currencies.
Decreasing demand for gold often leads to a weakening of AUD and an increase in its volatility. For most traders AUD/HUF is exotic. However, this financial instrument has great potential, which many speculators simply underestimate.
Hungary, having entered the EU, left in circulation its national currency. This created certain difficulties for companies trading in the internal market of the union. As a result, many companies began to withdraw their capital outside of Hungary.
The Hungarian economy is not as strong as its closest neighbors. In order to maintain the competitiveness of export goods, enterprises are reducing their prices, which negatively affects the cost of labor.
All this complicates the growth of the country’s GDP. At the same time, the forint sensitively reacts to any economic news and political statements that, even if indirectly, relate to Hungary. For traders, such conditions are ideal. The forint has high volatility that can be used to generate profit.
The unpredictability of the exchange rate of the Hungarian currency speaks in favor of choosing a scalping strategy. HUF is not well suited for the use of medium and long-term tactics. This is indicated by many experts and market analysts. Long-term investments in this currency are very risky. However, it is ideal for intraday trading.
Some events predictably affect the HUF price. We recommend to closely monitor the release of new indicators on unemployment, GDP indicators, changes in the interest rate, etc.
To make good money on the AUD/HUF currency pair, you need to track events that affect the economies of both countries. Naturally, fundamental analysis needs to be combined with technical. We also recommend paying attention to money management. The AUD/HUF currency pair is very volatile, so transactions with this financial instrument should be approached with the utmost responsibility and accuracy.