The Australian Dollar

Australian Dollar

 

The Australian dollar (CODE: AUD) is the currency of the Commonwealth of Australia, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu. Within Australia it is almost always abbreviated with the dollar sign ($), with A$ sometimes used to distinguish it from other dollar-denominated currencies. It is subdivided into 100 cents.

The Australian dollar is, as of 2012, the third-most-traded currency in the world.  In 2010 it was the fifth-most-traded currency in the world foreign exchange markets behind the US dollar, the euro, the yen and the pound sterling.  The Australian dollar is popular with currency traders.  It is because of the comparatively high interest rates in Australia and the relative freedom of the foreign exchange market and stability of Australia's economy.  The Australian Dollar offers diversification benefits in a portfolio containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle.  The currency is commonly referred to by foreign exchange traders as the "Aussie."