Australian Dollar (AUD)
The "Aussie Dollar" is the official currency of Australia and the 5th [i] most traded currency in the world.
The AUD/USD currency pair is popular with Foreign Exchange (FX) traders due to Australia's relatively high interest rate, stable economy and exposure to the commodities sector.
What influences the AUD?
1. Interest Rates
The falling cash rate has decreased the AUD's value as foreign investors withdraw their funds and chase higher returns in other countries. View an example image.
2. Commodity Prices
Falling commodity prices have negatively impacted the AUD as demand for Australian Dollars to buy our commodities falls.
Lower forecast growth has put downward pressure on the AUD as people move to the safe haven US Dollar.