Forex Market History In Australia

The Australian dollar has the fifth position at the priority of traded currencies in forex market today. It goes after the U.S. dollar, the euro, the yen, and the Pound sterling. The Australian dollar holds from 4% to 5% of the transactions around the world. However, forex market history in Australia can be dated back to 19th century.

In the history of forex market in Australia, the duodecimal Australian pound was the official currency till 1966, when the Australian Dollar was introduced. In order to distinguish the Australian dollar from the other dollar currencies A$ or AU$, it is denoted by AUD. After the introduction of Australian Dollar, the exchange value categorizes to the sterling silver at the rate of 2 AUD per British Pound. Read on to know more about the forex history in Australia and how AUD become the most traded currencies of forex market.

In the year 1967, sterling depreciated against the USD therefore AUD left the sterling era then. The AUD shifted its peg to the USD at the same rate of 1 AUD = 1.12 USD. The AUD$ correlates with the prices for gold and commodities by 80%. It happens because Australia has the third place in gold production in the world and its gold export makes up $5 billion annually. This causes the AUD$ dependence on the commodity prices: the Australian dollar rises when they go up and declines when they get lower. Know more about the history of currency trading in Australia.

The economic stability and the absence of a severe governmental regulation of the AUD make it appealing for forex traders. Moreover, the currency’s high volatility, exposure and interest swap caused the Australian dollar to be pretty popular among the forex traders. Australian dollar become an attractive vehicle for currency speculators. Today, it is one of the most traded currencies in the world despite the fact that Australia only comprises 2% of the global economic activity.