AUSTRALIAN FOREX NEWS (AUSTRALIAN FOREX)

The Australian forex market is essentially about exchanging Australian dollars for another currency and vise versa. The demand for Australian dollars in the forex market has risen significantly since the currency was floated by the government in December 1983. With about A$1.9 trillion worth of transactions taking place everyday, the Australian dollar is the sixth most traded currency in theforex market . The currency lags only the US dollar, the Japanese yen, the Euro, the British pound sterling and the Canadian dollar in terms of trading volume. Australia Forex: Reasons for Popularity of the Australian Dollar The Australian forex market has benefited from the popularity of the country’s currency. Here are some of the reasons for the popularity of the Australian dollar: The relative lack of government intervention in controlling the value of the currency in the forex market. Relatively high interest rate offered by the Royal Bank of Australia (RBA). The strategic location of Australia in the Asia-Pacific region. Free export and import of the currency up to A$10,000. Relative stability in the country’s political and economic environment. Lower impact of global recession on the Australian economy. Australia Forex: Regulations for Brokers Forex trading in Australia is regulated by the Australian Securities and Investment Commission (ASIC). The Australian law and regulations necessitate: All brokers offering retail forex services to be registered with the ASIC. All forex brokers to have an Australian Financial Services License. Alternatively, they could be licensed with the RBA. Australian Forex: Importance of the Central Bank The RBA plays a critical role in the Australian forex market. It meets 11 times in a year to discuss issues related to its monetary policy and interest rates. Its decision on interest rates can affect the value of the dollar in the Australianforex market. Australia Forex: Most Active Trading Hours The best hours to trade in the Australian currency is around the time when Tokyo trade opens. This is the time at which the Australian economic data, which has a direct impact on the value of the country’s currency, is released.