Australian Dollar is the official currency of the Commonwealth of Australia including several islands under its influence. Its ISO official code is AUD but it is also commonly written as the dollar sign with the letters AU. At present, it is estimated to hold the sixth place on the list of world’s most traded currencies. It shares about 5% of the world wide foreign exchange business.
The foreign currency traders all over the world like to trade in Australian Dollars because of the high interest rates in Australia. It is also greatly exposed to Asian economic markets and the commodities cycle. The general stability of the economic and the political system of the country also attracts the investors to invest in Australian Dollar.
Australia has a gigantic metal mining industry. Thus when the metal prices tend to go up, Australian Dollar also sees an upward trend. The Australian economy is highly facilitated by strong domestic economic activity. The economy of Australia is mainly dependent on the policies of the West. It’s a capitalist economy and has the GDP per capita income at par with the four leading economies of Western Europe.
Australia has reinforced its relations with China over the recent years. This association has helped a great deal in strengthening the economy of the country, thus escalating the value of Australian Dollar.
One thing which has affected the Australian Dollar in a negative way is the country’s trade deficit which went bad due to famine in some areas of the country and strong requirement to import. Another point of concern is the brisk increase in the domestic housing prices. This has raised the prediction that the Central Bank will have to increase the interest rates to keep the prices and inflation under control. This will stop the crisis from aggravating further and will help the economy to be secure.
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