The Australian currency system utilizes the Australian dollar, also known as the AUD or “buck”, as its country’s currency base. Established in 1966, the buck is identified through the dollar symbol ($). It is true that there are numerous dollar currencies worldwide; therefore Australian dollar is distinguished by the sign A$.
The Australian dollar is currently the sixth most widely traded currency on the globe following the US dollar, Yen, Pound, Euro and Swiss Franc, according to the global foreign exchange markets. Furthermore, according to the global foreign exchange markets, is one of the most favorable currencies based on Australia’s high interest rates and the stability of its current economy as compared to other trading countries. Due to Australia’s relative financial freedom from the country’s government with regards to foreign exchange trading and the international ties with America and Asia, the buck is seen as a strong currency.
The 1970s were an important time for the Australian currency as this was the period when Australia began using the fluctuating or flexible exchange rate measure against the USD exchange rate currency. In April 2001, Australia saw the A$ reach its lowest value against the USD when it reached approximately 47.7 US cents to 1 Australian dollar. However, Australia had its forex rate revenge (so to say) in 2010 when on October 15th it reached an equivalent amount with the USD. While in previous years, visitors to Australia would have found it beneficial to exchange their currency they are now experiencing the opposite. In 2016, the strength of the A$ exchange rates makes it rather costly for visitors to convert travel cash to an appropriate amount for an enjoyable vacation. If you are planning a trip and would like to find out more about currency rates in Australia then please contact us.
Over the years, trading on the foreign exchange has become popular with increased growth due to the introduction of online trading sites. The online trading option allows individuals to buy and sell foreign currency in a speedy and convenient manner. Furthermore, the sites are highly beneficial when helping determine the average rate of different currency at that present moment in time by using a currency calculator. All the currencies are available to trade, but one that is greatly overlooked is the Canadian dollar.
The Canadian dollar, distinguished from additional dollar based currencies by C$, is the seventh most widely traded currency in the world as of 2007. Despite being associated with the USD in previous years, the Canadian dollar has begun trading freely with its own code of CAD. One of the strong currencies, the CAD has a foreign exchange ranging equivalent to the USD and is typically fairly stable in its rating; however, it has been seen that this stability to the USD can change slightly according to commodity trade. Commodity trade is an essential aspect to review whenever examining Forex exchange in Canada as the economy relies greatly on this type of trade. The close links to the US dollar, the largest currency in the world, and trading of commodities makes the Canadian dollar similar to the Australian dollar when converting back to US dollars.
Forecasts by analysts in foreign exchange trading contribute to the trades being completed and in 2011 the forecasts for the Canadian dollar were greatly varied. While in 2009 and 2010 it performed well when compared to the US dollar and British Pound gaining at 16% and 5.5% respectively; there were considerations being made the following year when Australia experienced severe flooding. While it was expected that the CAD would continue to trade at an equivalent rate to the USD in 2011, the expectant dramatic increase in commodity prices in Australia could influence conversion rates. It was forecast that the flooding would result in crippling effects on Australian consumer confidence and investors would possibly send money to the Canadian dollar, thus further strengthening the dollar.