I’m asking you and even myself: Why would the Australian dollar merit a blog? Why is it worth blogging about? Well, the Australian dollar, the currency of the Commonwealth of Australia, is the fifth most traded currency around the world, just behind the US Dollar, Euro, Yen and the British Sterling. It means that it has a great demand around the world.
According to Wikipedia, the Aussie dollar is popular with currency traders (that is those who are engaged in Forex) because of the following reasons:
(1) The comparatively high interest rates in Australia;
(2) The relative freedom of the foreign exchange market from government intervention
(3) The general stability of Australia’s economy and political system (They have a federal-parliamentery form of government)
(4) The prevailing view that the Aussie dollar offers diversification benefits in a portfolio containing the major world currencies. This is specially because of its greater exposure to Asian economies and the commodities cycle i.e. Australia is the producer of more than a quarter of the world’s coal.
We would learn more about the Australian currency as we go along. There’s a lot of free forex education web site out there so it’s worth checking them out to. As for us here in Australian Daily Forex, we would focus on the Australian currency.
