Present Condition of the Aussie (Australian Dollar)
Australia is situated in the Southern Hemisphere with a huge population and good economic growth. The currency used in this country is known as the Australian dollar or Aussie with a representation of AUD, $ or A$. This currency has a significant value in today’s market in comparison with the U.S. dollar and its present value is
1 Australian dollar = 1.0149 U.S. dollars.
What is currency? A currency is usually referred to as an accepted medium of exchange and each state has its own currency. In Australia the currency used by the people are Australian dollars. The Australian dollars are issued by the Australian Reserve Bank since the year 1966.
Is the Australian dollar a convertible currency? Yes of course this currency is fully convertible and it has no restrictions or limitations on the amount of currency that has been traded on the international market. According to the traders, currency strength can depend on several factors like fundamental data, economy of a country or the interest rates. It also depends on the other currencies especially the U.S. Dollar Index.
When did this currency come into rule? This currency was put forth into action in 1966 and reached popularity in the foreign exchange market in a short amount of time. It has seen both fall and rise in certain periods but now its rates are high and even more so than the US dollar.
The present situation of the Australian dollar is high as you can see from the currency conversion rate and it has imposed a lot of traders to invest their money in Australian dollars. Presently it is shown that the Australian dollar is being traded at $1.1080 against the US Dollar and analysis have predicted that it can reach up to $1.70 by 2014. This currency is playing vital role in the exchange markets when compared to the US dollar.
Australia has an inflation rate of 3.3%. What causes the inflation rate? Does it affect the currency?
Inflation rate is the change in the Consumer Price Index over time. If the rate of Consumer Price Index Is high then the inflation rate will also increase which affects the currency value. Australia is quite strong with its imported goods and if the commodity price changes then it can result in a variation of currency.
Australia has also imposed a high rate of interest which has helped the Australian dollar grow in the exchange market. The interest rate is around 7% as of now but the Australian Reserve Bank has predicted to have an increased interest rate in the forthcoming year. You can invest your currency in any foreign exchange market that is ready to trade currencies. If you are looking to trade the Australian dollar in the foreign exchange market, then this is the ideal time to do so. As the interest rate will be high for a certain period of time, you can expect the currency to be stable and can look forward to having the value increase relatively.
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