Australian CFD and FX provider First Prudential Markets, known as FP Markets, recorded strong FX trading volume amid a volatile market last month. The growth in FX trading volume came on the back of uncertainty in commodity markets, mainly in oil and iron ore prices.
The company reported that the total volume of FX trades was up 6 percent month-on-month and follows last month’s announcement of a solid volume of trades for the first quarter of 2016 which revealed double digit growth on its FX volume.
Daniel Bent, Head of FX at FP Markets, commented: “The Aussie dollar stood its ground between the .7500 – .7800 cents in April and we saw some healthy flows of trade on the Aussie on the back of its strength last month. Aside from the Aussie dollar, there were also strong trading on the EUR/USD, GBP/USD and USD/JPY, which represent our top traded currency pairs”.
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As a commodity bloc currency, the Australian dollar’s (AUD) moves are affected by fluctuation in oil and other commodity prices. A strong US dollar also affected the dollar’s move in April as some US economic data provided some temporary push for the greenback last month.
The AUD saw some substantial falls at the beginning of May following the Reserve Bank of Australia’s (RBA) decision to cut interest rates. With global central bankers scrambling to support their own respective currencies as well as trying to encourage growth in their countries, volatility in the FX market is expected to continue.
Bent supported the possibility of some volatility in the coming months due to a number of factors including commodity prices and monetary policy adjustments globally.