Detailed information and fundamental factors
Central Bank: Reserve Bank of Australia
Interest Rate: 1.50%
Public Debt to GDP Ratio, 2019: 47.1%
Trade Balance, 2019: $9.1 bln.
Inflation, 2019: 2%
Major commodity exporter – medium
High-yielding interest rates – weak
Factors of Weakness
Domestic housing bubble
The Australian dollar is the official currency of the Commonwealth of Australia. It is often called the Aussie by Forex traders. The currency was implemented in 1966 and allowed to freely float at 1983. Australia has an export-driven economy (the mining sector represents 19% of GDP), therefore the value of the Aussie depends on commodity prices. Australia has strong trading ties with Asia, particularly China, so economic growth in that region has a particularly strong impact on Australia’s currency. The Aussie is used in carry trade because of the relatively high interest rates in Australia.