AUD (Australian Dollar)

What Is the AUD (Australian Dollar)?

AUD (Australian Dollar, or "Aussie") is the currency shortening for the Australian dollar (AUD), the offocial currency for the Commonwealth of Australia. The Australian dollar is comprised of 100 pennies and is frequently given the symbol $, A$, or AU$. The AUD supplanted the Australian pound, which was a holdover from its days as a British province, in 1966.

The Australian dollar is additionally the currency for Pacific Island states of Nauru, Tuvalu, and Kiribati.

Grasping the AUD (Australian Dollar)

The Australian dollar was first presented on February 14, 1966, when it supplanted the Australian pound. As of now, it was pegged to the Great Britain pound sterling at 2 dollars to one pound. In 1967, Australia abandoned the sterling peg and pegged to the U.S. dollar at 0.8929 Australian dollars to one U.S. dollar. In 1976, it turned into a moving peg to a trade-weighted index. The AUD turned into a free-floating currency in 1983.

The AUD is managed by the Reserve Bank of Australia (RBA) is the national bank of Australia, which sets the country's monetary policy and issues and deals with the Australian money supply. The bank, completely claimed by the Australian government, was laid out in 1960.

Since Australia is one of the world's biggest coal and iron mineral exporters, the value of its currency is vigorously dependent on commodity prices. During the commodity slump of 2015, oil prices hit decade lows and both iron metal and coal prices dropped to recent lows. Subsequently, the Australian dollar debilitated forcefully, falling in excess of 15 percent against the U.S. dollar arriving at parity against the New Zealand dollar (NZD) - levels unheard of since the 1970s.

AUD and Forex Markets

AUD's notoriety among forex traders connects with its three Gs: topography, geology and government policy. Australia is among the most extravagant countries in the world in terms of natural resources, including metals, coal, diamonds, meat and fleece. Australia likewise is a regional power.

The AUD/USD currency pair will in general be negatively corresponded with USD/CAD, as well as the USD/JPY pair, to a great extent in light of the fact that the dollar is the quote currency in these cases. In particular, the AUD/USD pair frequently runs counter to USD/CAD, as both AUD and CAD are commodity block curre. Trading the AUD/USD currency pair is otherwise called trading the "Aussie." On the other hand, the AUD and NZD will quite often be emphatically related.

Starting around 2019, the Australian dollar positioned as the fifth most traded currency in the world, as per worldwide foreign exchange transactions, accounting for roughly 7% of trade. The high trading volume is due in part to Australia's political and economic dependability and to the government's limited intervention in the foreign exchange market.

Highlights

• The AUD is a well known currency for forex trading pairs, and is reliably among the main 5 most traded currencies.
• The AUD, or Australian Dollar, is the official currency of Australia and is additionally utilized by several Pacific island nations.
• The AUD was presented in 1966, supplanting the Australian Pound, where it was initially pegged to the US dollar. It changed to a free float in 1983 and has stayed that manner since.