The Australian dollar (AUD), or “Aussie” as some traders call it, is one of the strongest currencies in the Asia-Pacific region. The Australian dollar accounts for 6.0% of global market turnover and has an average value $479 billion.
The Reserve Bank of Australia (RBA) in its “Driver of the Australian Dollar Exchange Rate” notes: “Commodities account for a large share of Australia’s exports and so movements in commodity prices result in movements in export prices. Higher commodity export prices mean more Australian dollars are required to purchase the same amount of Australia’s commodity exports. This increases the demand for Australian dollars, and causes an appreciation. Indeed, the Australian dollar is often referred to as a commodity currency.”
This blog will give you some useful insights regarding the Australian dollar, the country’s economy and the RBA’s monetary policy.
Fluctuations in Australian Dollar
In March 2020, the Australian dollar fell against its US counterpart to its lowest level since 2003. It reached a low of $0.5510 March 19th. In April 2020, the National Australian Bank (NAB) published a report that noted…
