AUD/ILS Brokers

The AUD/ILS forex pair relates two significant global economies: Australia and Israel. The Australian Dollar (AUD), often dubbed as the Aussie, is the representative currency of Australia and its external territories. The popularity of AUD in the forex market comes from Australia's political stability, high interest rates, and link to commodities sector. On the other hand, the Israeli Shekel (ILS), the currency of Israel, is influenced by Israel's technology-driven economy and its geopolitical conditions in the Middle East. Trading this currency pair could be interesting for traders who wish to diversify their portfolios and are experienced in coping with potentially significant volatility due to the economic differences between these two nations.

The AUD/ILS currency pair value is influenced by various fundamental factors. These include the state of the economies of Australia and Israel, geopolitical factors, interest rates, inflation, and the trade balance between the two nations.

The Australian economy's performance, being a commodity-based economy, relies heavily on the export of raw goods such as iron ore, coal, and agricultural products. Any changes to these commodity prices can drastically impact the value of the Australian dollar (AUD).

For Israel, its economy heavily emphasises services, particularly in high-tech sectors such as software, telecommunications, and computers. Therefore, advancements in technology, investments in high-tech industries and the state of the global IT markets can affect the value of the Israeli shekel (ILS).

Both countries' central banks' monetary policies are also influential; more-expansionary policies tend to devalue a currency, while contractionary policies will likely increase a currency's value.

Inflation rates and economic growth are vital too; typically, as a country’s economy grows at a healthy rate, the value of its currency strengthens compared to others, and high inflation can undermine a currency’s value.

Lastly, geopolitical tensions and uncertainties can influence the AUD/ILS as investors may choose to put their investments in perceived 'safe havens', which may not include either AUD or ILS.

Therefore, to effectively trade the AUD/ILS pair, it's important to keep a close eye on these fundamental influences.