The growth in economy of Australia has been rapid, especially in the recent past it has been one of the fastest growing economies in the world. And obviously the economy has an effect on the trading the country’s currency in the international trade market, and the stability in their economy has made the Australian dollar much stronger, and it is among the top most traded currencies of the world, among the powerhouse currencies like USD, GBP and JPY. The growth in economy has had an effect on the trade and transactions of Australia, their interest rate and the value of their currency has been better, this situation has not gone unnoticed, and onlookers from within and outside Australia have been keeping tabs on the situation. Because stability and rise of one currency can be downturn of any other currency, not in that sense like the currency would suffer just because a particular currency has been getting strong, but there is always a possibility that it would become your fierce competitor in the international trade market, and who knows it may take away a lot trade from you, for example let’s take the example of the Canadian dollar and the US dollar, the Canadian dollar is almost at par with the US dollar now, Canada is now importing products from America more than ever before, and imports by America from Canada has been decreased, because now the Americans find it expensive than before to import from Canada, so they might look for alternatives now.
Now is a purple patch for the Australian dollar, but things were not always smooth, when the economy faced crisis in 2009-2010, but at that time Australia was not the only country that faced economic crisis, there was a global downturn and recession, which effected many countries and economies. But Australia has recovered well, many economist and analyst have a strong belief on the plans of Australian government to get the country out of the crisis, and they did, their economy was back to normal, and the Australian dollar was on song again in the international trade market. Not only the dollar recovered it came out stronger from storm, and since then it has been growing. The exports have been good, more than normal, majority of Australia’s exports are to china, which include coal, gold, petroleum and related products. Exports to china cover almost 29% of Australia’s total exports. However, the Australians have been warned about the situation that there could be a rise in products value and countries would not easily trade with them, rise in currency is a good thing, but it can also bring adversity with it, other trade partners would find it hard to pay off the debts in time, if the currency’s value is growing all the time, but still people are interested in investing in the Australian dollar, everyday trade of the Australian dollar in the international trade and monetary market is a very good example of it.