The Australian Dollar is among the top five most commonly traded currencies on the Forex market, and has been a free-floating currency, since 1983. The extensive wealth of natural resources that Australia possess, like diamonds, iron ore, coal, nickel, uranium, agricultural products, gold, and oil, is one of the main reasons why the Australian Dollar is so popular among traders.
The Reserve Bank of Australia (RBA) controls the Australian dollar and doesn’t make frequent interventions in the currency market. Australia’s heavy reliance on commodities means that the value of the Australian dollar is heavily tied in to any fluctuations in the value of these commodities.
Did you know the coins and currency-pairs have nicknames?
The Australian Dollar is simply nicknamed Aussie!