Australian Dollar General Info
The three letter currency code for the Australian Dollar is AUD and the symbol is $. It is the domestic currency in Australia, Christmas Island, Cocos Keeling Islands, Heard And McDonald Islands, Kiribati, Nauru, Norfolk Island and Tuvalu.
The Australian dollar is the fifth most traded currency in the world, it trades in the world foreign exchange markets behind the US dollar, the euro, the yen and the pound sterling. The Australian dollar is popular with currency traders, because of the high interest rates in Australia, the freedom of the foreign exchange market from government intervention, the stability of Australia's economy and political system, and the view that the Australian dollar offers diversification benefits in a portfolio containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle. The currency is commonly referred to by foreign-exchange traders as the Aussie dollar.
AUD - Currency Market News
Against the US dollar, having climbed to a 28-month high above 0.81 in September, the Australian dollar spent much of the next five weeks losing value. AUD fell roughly three cents by mid-October to 0.782. The Aussie’s year-to-date gain over USD remained close to 9%.
Against the New Zealand dollar, AUD fell back from September’s high of 1.115 to 1.09 by October 17th, but was still up 5% on the year.
In October, Australian Treasurer Scott Morrison expressed no discomfort with the higher valuation of the Australian dollar. Morrison suggested that Australian exporters had adapted to the higher currency.
Morrison’s view differed slightly from that of the RBA, which continued to suggest within its monetary policy statements that it would like to see AUD weaken. At each of its August, September and October meetings, the RBA said that the currency’s higher value “is expected to contribute to subdued price pressures in the economy…[and] is weighing on the outlook for output and employment.”
In September, Dutch bank ABN Amro predicted that AUD/USD would rise to 0.9 by the end of 2018. As reasons for the pair’s climb, ABN cited “strong conviction” on future US dollar weakness, future commodity price rises, an improvement in global trade and potential rate hikes by the RBA.
The long-term technical outlook for the Aussie supports ABN’s view. On the monthly AUD/USD chart, July’s clean break from a crisp triangle (or pennant) pattern suggests higher prices ahead over the next twelve months.