With China as the largest player in the East, it's easy to forget about other major currencies of the region. China's death grip on the yuan keeps it in check, making trading yuans less attractive. Others in the arena are not; their currencies are freely floating and are important on the world foreign exchange market. The two major players in the Pacific, after the U.S. are the Japanese and the Australians, each having its own currency.
The Australian Dollar and Forex Analysis
The Australian Dollar (aud, A$), the official currency of the Commonwealth of Australia, is the fifth most heavily traded currency in the world. It is used throughout the provinces of Australia and the Pacific Island States of Kiribiti, Nauru and Tuvalu. Since several other countries use the dollar as the base unit of their currency, the Australian dollar is denoted by A$. United States dollars are US$ and so on. Australian dollars break down just like our own, into 100 cents. The A$ 0.50 cent piece is one of the world's largest coins that is still in circulation.
The Australian dollar is popular among currency traders, making it the fifth most heavily traded currency on the Foreign Exchange. It ranks behind the US Dollar, the Japanese Yen, the Euro and the Sterling. The A$ is heavily traded for several reasons. High Australian interest rates provide good returns. There is freedom in forex markets not found in other more regulated markets such as stocks and bonds.
The general stability of the Australian economy and government provide safe footing for foreign investors and Australia is also seen as a safe way to gain diversification into Asia. The Australian dollar is recommended for portfolios holding the major world currencies giving great exposure to the economic and commodity cycles of China and Japan.
Originally, Australia's money was that of its mother country, England. The pound had been used there since the beginning of the colony and wasn't changed until the mid 1960s. When the decision was made to change, several other choices were considered before settling on the dollar. Some names included in the list were the Boomer, the Roo, the Dinkum and the Oz. After briefly being called the "Royal," the dollar was finally settled on. At first, the A$ was pegged to the pound and was equal to one gram of gold. It was soon allowed to float on the open market.
At the time, the world's exchange rates were maintained by the Bretton-Woods System. All currencies were pegged to the US$ and had fairly stable exchange rates. It turns out that the Aussie move away from the sterling peg was timely. Just a year later, the British pound was devalued against the dollar. This left the A$ unharmed on the world market and gave it a leg up against its former parent. After the world left the gold standard, the A$ maintained its peg to the US$ until 1983, when it was floated on the international market and allowed to be valued based on the supply-demand cycle of the international money markets.
There are many places to get data for your forex analysis. However you must be careful of your sources, many are compromised and spun for a purpose.
The Australian Dollar and Forex Analysis
The Australian Dollar (aud, A$), the official currency of the Commonwealth of Australia, is the fifth most heavily traded currency in the world. It is used throughout the provinces of Australia and the Pacific Island States of Kiribiti, Nauru and Tuvalu. Since several other countries use the dollar as the base unit of their currency, the Australian dollar is denoted by A$. United States dollars are US$ and so on. Australian dollars break down just like our own, into 100 cents. The A$ 0.50 cent piece is one of the world's largest coins that is still in circulation.
The Australian dollar is popular among currency traders, making it the fifth most heavily traded currency on the Foreign Exchange. It ranks behind the US Dollar, the Japanese Yen, the Euro and the Sterling. The A$ is heavily traded for several reasons. High Australian interest rates provide good returns. There is freedom in forex markets not found in other more regulated markets such as stocks and bonds.
The general stability of the Australian economy and government provide safe footing for foreign investors and Australia is also seen as a safe way to gain diversification into Asia. The Australian dollar is recommended for portfolios holding the major world currencies giving great exposure to the economic and commodity cycles of China and Japan.
Originally, Australia's money was that of its mother country, England. The pound had been used there since the beginning of the colony and wasn't changed until the mid 1960s. When the decision was made to change, several other choices were considered before settling on the dollar. Some names included in the list were the Boomer, the Roo, the Dinkum and the Oz. After briefly being called the "Royal," the dollar was finally settled on. At first, the A$ was pegged to the pound and was equal to one gram of gold. It was soon allowed to float on the open market.
At the time, the world's exchange rates were maintained by the Bretton-Woods System. All currencies were pegged to the US$ and had fairly stable exchange rates. It turns out that the Aussie move away from the sterling peg was timely. Just a year later, the British pound was devalued against the dollar. This left the A$ unharmed on the world market and gave it a leg up against its former parent. After the world left the gold standard, the A$ maintained its peg to the US$ until 1983, when it was floated on the international market and allowed to be valued based on the supply-demand cycle of the international money markets.
There are many places to get data for your forex analysis. However you must be careful of your sources, many are compromised and spun for a purpose.
