Base and quote currency, which is affected

[thecross]

Hi, I am new to forex. I have read about intermarket analysis, my question is,:

example: I went long on USD/AUD , a bad Australia economic report just came out, will it affect the currency pair? which report (base or quote related) will hit the pair harder?

Thanks.

[Pipguy]

I'm new too but I'll take a stab at it. If you went long on the pair you bought USD and sold AUD. A bad econ report from Austrailia should hurt AUD in relation to USD so it should be a good thing for you.

[thecross]

Hi pipguy, thanks for the shot, I believe you are right. I have "short" USD/CAD and a good Canadian CPI report brought the currency down, and it was good for me. SO it should do the opposite like you have said.

[[Deleted]]

Aussie is direct

Hi, guys...

Since the aussie (nickname for AUD) belongs to direct quotation, so you have misquoted it as USD/AUD. You should tell it AUD/USD due to AUD in this case acts as the base currency. The principle is: the first quoted is base currency, and the second one is counter currency. So, if you go long (some people say go north instead of go long) AUD, it means you buy AUD and sell the bucks (nickname for USD).

Wish it can be an enlightment for you...

You may contact me at [e-mail]

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INDONESIA NOT A SUCH BAD COUNTRY....

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