Currency Traders: Australian Dollar Update
The Australian dollar in its modern incarnation has so far been very popular with currency traders due to high interest rates and a relatively stable political background. Australia’s geographical location also means that it is exposed to the Asian markets, offering low-risk diversification to investor portfolios. It is the fifth most traded currency in the currency market.
Since its introduction in 1966 to replace the Australian pound, the AUD has been pegged to various currencies – until 1983, when the Prime Minister Bob Hawke and Treasurer Paul Keating floated the dollar, leaving it to the whims of the currency market.
Of note is that Australia was the first country in the world to introduce special security features to its banknotes, such as a transparent window with optically variable images and light-sensitive illustrations. Another interesting aspect of the AUD is that at with a mass of 15.55 grams and a 31.51 diameter, the 50 cent coin is one of the larger coins in circulation in the world.
