How AUD/USD is quoted, and why that decides your pip value
AUD/USD is quoted as the number of US dollars per one Australian dollar, with the Australian dollar as the base currency and the US dollar as the quote currency. In practice, the pip is the fourth decimal place in the exchange rate, though many brokers now show a fifth decimal for fractional pips. Because the quote currency is USD, the pip value in US dollars is fixed for a standard lot: it does not change with the exchange rate. But if your account is denominated in another currency, the pip value in your account currency moves with the current AUD/USD rate. The calculator above applies the live rate to give you the exact pip value for your position size and account currency.
| Instrument class | Major pair |
|---|---|
| One pip | 0.0001 |
| Standard lot | 100,000 AUD |
| Value of one pip per lot | $10.00 |
| Notional value of one lot | — |
| Margin on one lot at 1:30 / 1:100 / 1:500 | — |
The last two rows move with the market and are filled in from the live rate; everything above them is fixed by the contract. Leverage available to you depends on your regulator and account type — check it in the platform before you size a position.
What drives AUD/USD day to day
The pair is driven by the relative monetary policy and economic outlook of the Reserve Bank of Australia and the Federal Reserve. Interest rate decisions, forward guidance, and quantitative easing or tightening from either central bank shift the expected interest rate differential, which is a primary driver of the exchange rate. Commodity prices, especially iron ore and other metals, also influence the Australian dollar because Australia is a major exporter, but the RBA and the Fed are the core drivers. Traders watch statements, minutes, and speeches from both institutions for clues on future policy.
| Currency | Central bank | Policy rate | What moves it |
|---|---|---|---|
| AUD | Reserve Bank of Australia (RBA) | Cash rate target | RBA · CPI · China data |
| USD | Federal Reserve (Fed) | Federal funds target range | FOMC · CPI · jobs data |
When AUD/USD trades well, and when it does not
AUD/USD is most liquid during the overlap between the Sydney/Tokyo session and the London session, and again during the London–New York overlap. The pair can be volatile during the Asian session when Australian data is released, and during the US session when Federal Reserve events occur. Before entering, check the economic calendar for RBA and Fed announcements, as well as Australian employment, inflation, and trade data, and US non-farm payrolls and CPI. Also consider the current spread and your broker's execution speed during these times, as liquidity can thin out and spreads widen around major releases.
Spreads are tightest when two sessions are open at once and widest when one desk has gone home and the next has not arrived. The shaded band is the overlap.
Pip values sourced from ECB reference data (Frankfurter API). Live BTC/ETH prices from CoinGecko. All values are indicative and for educational purposes — not live trading quotes. See full pip value table →