ASX 200 (AUS200/USD)
The ASX 200 (AUS200/USD) is Australia’s premier stock index, tracking the top 200 companies listed on the Australian Securities Exchange. It offers a direct lens into the nation’s economic pulse — one driven by mining, banking, and commodities. As a result, traders often view the ASX 200 as a resource-weighted macro index that reflects both global risk appetite and demand for raw materials.
What Is the ASX 200 (AUS200/USD)?
The ASX 200 represents the 200 largest companies by market capitalization on the ASX. These include major financial institutions like Commonwealth Bank, ANZ, and Westpac, along with resource giants such as BHP Group, Rio Tinto, and Fortescue Metals.
This index is more than just a snapshot of Australian equities. Because the economy is tightly linked to global commodities, especially iron ore and gold, the ASX 200 offers exposure to macroeconomic shifts in China, global trade flows, and demand for base metals.
Why the ASX 200 Moves
The ASX 200 doesn’t move randomly. Instead, it reacts to global commodities, Chinese macro policy, interest rate expectations, and risk sentiment across the Asia-Pacific region. It tends to trend cleanly when macro conditions align.
Iron ore and gold prices
Since Australia is a top exporter, these directly influence equity flows
Chinese demand
Economic health in China often lifts or drags the ASX 200
RBA rate policy
Shifts in the Reserve Bank of Australia’s stance drive bank stocks
Global sentiment
Moves in S&P 500, risk-on rallies, or risk-off meltdowns translate directly
Currency impact
A weaker AUD supports export-focused companies and can fuel rallies
How to Trade the ASX 200 (AUS200/USD)
The ASX 200 isn’t the most volatile index, but that doesn’t mean it lacks opportunities. In fact, when paired with strong directional conviction around commodities or China data, it becomes a powerful tool for swing and structure-based trades.
Swing traders align with iron ore cycles and commodity forecasts
Correlation traders play AUD/USD and China’s impact on mining names
VWAP traders and intraday scalpers rely on clean technical levels during the Asia session
Tactical approach:
Monitor China GDP and PMI releases for directional clues
Pair trades with gold and iron ore trends to build multi-asset conviction
Watch AUD/USD movement to identify strength or weakness in local exporters
Use clear daily breakouts and liquidity levels for precision entries
Key Characteristics
Volatility
Moderate — most active when commodity markets are trending
Liquidity
Strong during Australia’s market hours
Correlations
AUD/USD, iron ore, gold, China macro data
Session Behavior
Active in early Asia, fades after mid-session
Best Use Case
Macro-aligned swing trades, sector-driven plays, correlation setups
Example Trading Scenario
China announces new infrastructure stimulus. Iron ore prices surge. ASX 200 breaks above previous day’s high.
Entry: Long at 7,180.00
Stop Loss: 7,120.00
Take Profit: 7,290.00
Risk-Reward: 1:1.83
This setup plays off macro alignment, sector strength, and structure confirmation.
Summary Checklist
- Asset Type: Index
- Symbol: AUS200/USD
- Volatility: Moderate
- Correlated With: Commodities, AUD/USD, China’s economy
- Best For: Macro swing plays, correlation trades, Asia session setups
Frequently Asked Questions
What is the ASX 200 (AUS200/USD)?
It’s Australia’s top 200 publicly listed companies by market cap, offering a broad view of the country’s equity performance.
What sectors dominate the ASX 200?
Banking, mining, and commodities make up a huge portion of the index’s movement.
How is the ASX 200 impacted by China?
China is Australia’s biggest trade partner, so Chinese demand directly impacts mining stocks and, by extension, the ASX 200.
When is the best time to trade ASX 200?
What is the average daily pip movement of AUS200/USD?
It typically moves between 150 and 350 pips daily, depending on commodity prices and global risk flows.