The Australian dollar is used as the base currency for the Australian currency system. The Australians call the dollar, or AUD, a “buck.”
This currency was introduced in 1966, and is usually designated by the dollar signs ($), and at times A$ is used in order to distinguish it from all of the other dollar currencies.
The Australian dollar is the world’s sixth most traded currency, after the Swiss Franc, Euro, Pound, Yen and US Dollar via the global foreign exchange markets.
The Australian dollar’s value through Australian currency trading is quite strong, due to the international ties it has with Asia and America.
In addition to this the Australian economy is fairly stable as well as relative free from government intervention.
Another reason why it is favourable is due to the high interest rates in Australia compared with the rest of the world, which makes its exchange rates one of the best.
The Australian dollars exchange rate (which is also referred to as the Forex rate) began in the 1970’s at a time when the fluctuating rate measure “flexible” was used by Australia against the USD or US exchange rate currency.
In April 2001, the lowest value for the Australian to U.S. dollar was reached when it went to approximately 47.7 U.S. cents, while its high was reached on 15 October 2010, when it reached the equivalent of the U.S. dollar.
Freedom for trading on the foreign exchanges has significantly increased with currency trading and trading websites being introduced.
Selling and buying of foreign currency online has emerged as a very popular activity. These types of sites are very useful when it comes to calculating the average rate of currencies and for international money transfers – rates of exchange. This allows for easy and quick currency translations when utilising a currency calculator.
Given how strong the Australian dollar is, visitors of Australia discover that the Australian exchange rate is very expensive when it is being converted into holiday currency, as a result of other weak currencies, which reduces travel money as well as their purchasing power.
The opposite might be true when buying Swedish currency for visiting Sweden on holiday.
If you would like to trade Forex and make investments in foreign currency then one currency that is frequently overlooked is the Canadian dollar.
To distinguish it from its US dollar equivalent, C$ is used for the Canadian dollar, and CAD is its code.
As of 2007, the Canadian dollar is the world’s 7th most traded currency. The Canadian dollar was in the past pegged against the US dollar. However, it is freely traded now.
It trades on the Forex rate at a range of USD 1 = CAD 1. However, in the past it has swung both ways depending on what the market’s sentiments were related to commodities and the USA.
It is fairly stable as a foreign currency. Another reason for this is that it is part of a developed economy that heavily relies on commodity sales and has very close ties to the US economy, which is the world’s largest economy.
Therefore, converting the Canadian dollar into the Australian dollar is quite similar to converting to US dollars.
For 2011 analyst forecasts for the Canadian dollar were varied. It performed quite well in 2009 and also 2010, with 16% and 5.5% gains respectively against the British Pound and US Dollar and favourably as well against other currencies like the Australian Dollar.
For most of 2011 it was expected to trade in the USD 1 = CAD 1 range. Compared to Australia, those are more aggressive interest rates and with commodities prices expecting to drastically increase over the following year combined with the crippling effect that serious flooding has had on consumer confidence in Australia, more investors may be putting their money into the Canadian dollar and making it even stronger.