Australia foriegn exchange market has undergone an evoultionary history to become included in the top ten of the most activley traded currencies on the world foreign exchange market. Turnover for the 2001-2002 financial year was a stagering $22.7 trillion, which equiates to an average of $63 billion dollars per day.
With the trend of general global deregulation of foriegn exchange controls & administration, Australia’s forex was convereted into a managed floating rate in December 1983. Until that time it had been closely managed by the Reserve Bank of Australia. Since that time volume has grown significantly. Increased globalisation and the unique positioning of the Australian economy; with its abundant natural resources Australia is a relativley large exported or raw materials and the reliaance on the domestic economy for imports (partiucalry from Japan) results in strong foreign exchange activity. Recent deregulation in the financial
On September 11, the attack on the World Trade Centre in New York triggered a massive shock to the world. Reprecussians were felt throughout world financial markets and a period of intense bearish sentiment pervailled. Austrlia too felt the effects, as a ‘flight to quality’ sent capital out of Australia into apparent ‘safe havens’ such as the US. The AUD/UD dropped below the 50c barrier for several months. Equity markets fell as confidence evaporated.
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