Following U.S. dollar, yen, euro and the pound sterling, the Australian dollar is the globe’s fifth largest trading currency, representing 7.6% of the world’s day by day share. The Australian dollar is the currency of the Commonwealth of Australia, including Cocos (Keeling) Islands, Norfolk Island and Pacific Island states of Kiribati, Nauru and Tuvalu.
The currency abbreviated with the dollar sign ($) and traders use the code ‘AUD’ to distinguish it from the U.S. dollar. The AUD is famous with Forex brokers and traders, amid its strength, freedom from government intervention and the stability of Australia’s economy.
In addition, traders like to invest in the Australian dollar due to the stable political environment and adaptation of real world monetary standards, particularly in light of its more prominent presentation to Asian economies. Australia is the world largest exporter of commodities to the Asian markets, including iron ore, copper, and silver.
The Australian exchange rate has been continually rising against the US dollar and basket of other currencies over the last couple of months, amid Australian government stimulus measures and the recent cut in interest rates.
The Australian exchange rate against the U.S. dollar currently stands at the highest level of last four months following continued growth in commodity prices, interest rate cut and its high liquidity strength. Today, AUD/USD traded around 0.760, briefly touching the highest level of .7750 in the mid-day of a session.
British Pound is also exchanges at the lowest level of the last two year against the Australian dollar over the last few sessions.
Though Asian economies are slightly falling over the last couple of quarters, strong commodities demand from China has been providing a strong support to its currency and its exchange rate against the basket of other currencies.