AUD/SGD can hardly be called the most popular currency pair among forex traders. Additionally, this is a cross-rate pair. In other words, this is a currency pair that does not involve the US dollar. Despite this fact, the US dollar still has a significant impact on the pair’s trajectory. So, when comparing the AUD/USD and USD/SGD charts, one can get a more or less clear picture of AUD/SGD movements.

Main features

AUD/SGD is considered an exotic pair. This is why its fluctuations are extremely small. The exchange rate of this pair is quite stable as inflation in Singapore is quite low. Besides, the local economy is an export-oriented one (its top exports are consumer electronics, pharmaceuticals, shipbuilding, IT software solutions as well as financial services.

Singapore is well-known around the world for its high standard of living and a healthy economy. It is the most developed country in East Asia. This is why it is part of the Four Asian Tigers.

The AUD/SGD pair is low-liquid compared to major currency pairs such as EUR/USD, USD/CHF, GBP/USD, and USD/JPY.

How to trade AUD/SGD

As mentioned above, this is a low-liquid pair. Therefore, when predicting its price movement, it is crucial to pay attention to currency pairs tied to the US dollar. Traders should take into account important US macroeconomic indicators such as GDP, the key rate, unemployment rate, labor market figures, etc.

Notably, the Australian and Singapore dollars react to the release of US economic data at a different speed. This is why the AUD/SGD pair can serve as an indicator of the swings in the rate of both currencies.

If you want to start trading cross rates, please carefully read the trading conditions of your broker. Usually, spreads for these instruments are higher than for the main currency pairs.