AUD is the acronym for the Australian dollar, also known in the international currency market as the Aussie dollar. In 1966 the AUD replaced the Australian pound, and in 2016 marked its 50th anniversary as a currency. The Australian dollar is the official currency not only in Australia but also in many of independent South Pacific countries and territories including Papua New Guinea, Christmas Island, the Cocos Islands, Nauru, Tuvalu and Norfolk Island. The AUD developed into a free-floating currency in 1983. Its popularity among traders is related to its three Gs: geology, geography and policy of government, in terms of natural resources. Australia is among the richest countries in the world and its products include metals, coal, diamonds, meat and wool. Australia also represents a regional power in Asia.
About the EUR
Factors that Affect the AUD
Commodity Prices and Trade Terms
Factors that Affect the EUR
Prices and Inflation
The reasons for this are in part social and in part personal. Decades earlier, it was usually just the GBP/USD exchange rate that was cited, as the USD equals 1 GBP. This is called “cable notation”, in reference to the transatlantic telegraph cable used to relay quotations in the 19th century (thus turning London and New York into one market). Most other currencies are quoted as the sum of foreign currency, equals 1 USD. For their current currency, a few old British colonies that used GBP before independence still use cable notation. For example, the cable includes AUD, Bahamas dollar, Bermuda dollar, Botswana pula, Fijian dollar, Cayman Island dollar, New Zealand dollar, Papua New Guinea, Tongan, etc. Cable was also quoted before EUR, Irish punt and Maltese lira. Just EUR and IMF “private drawing privileges” are cited as cable outside of once GBP customers. Yet the cable is not cited on the Canadian dollar.
The AUD/EUR pair appears to be noteworthy during the trading day for lower variations in its variability. While the three typical peaks of variability followed by higher volumes can be established, these are all far less pronounced compared to the troughs, and far less different from each other. Perhaps the Australian dollar has less of a “home” and is traded around the globe consistently. Although volume is significantly higher around the beginning of the US trading day, it should be borne in mind that some of this is due to the natural flux of liquidity at the beginning of the regular futures trading session. Although the Australian dollar trades with the fifth highest volumes of any currency (partly due to international trading of natural materials, and partly due to carry trading), this apparent absence of any predictably is enhanced.