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  • Essay / The strength of the Australian dollar - 596

    First, the Australian dollar. Australia is one of the largest capitalist economies in the world, with a GDP of $1.57 trillion. Australia's economy is dominated by its services sector, which accounts for 68% of GDP. Additionally, the Australian Securities Exchange is the largest stock exchange in Australia and the South Pacific and ranks 9th in the world by market capitalization. Australia is home to some of the world's largest commodities companies, which are also Australia's 10 largest companies, including BHP Billiton, National Australia Bank, Commonwealth Bank, Rio Tinto Group, ANZ, Westpac, Telstra, Macquarie Bank , Woolworths and AMP. During 2012, the Australian dollar (AUD) was the 5th most traded currency in the world, accounting for 7.6% of the global daily share. The Australian dollar is popular with foreign exchange traders due to the relatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, the general stability of the economy and the Australian political system and the prevailing view that the Australian dollar...