What is AUD (Australian Dollar)
AUD (Australian Dollar) is the currency abbreviation for the Australian dollar (AUD), the currency for the Commonwealth of Australia. The Australian dollar is made up of 100 cents and is often presented with the symbol $, A$, or AU$. The Australian dollar is also the currency for Pacific Island states of Nauru, Tuvalu and Kiribati.
BREAKING DOWN AUD (Australian Dollar)
The Australian dollar was first seen on February 14, 1966, when it replaced the Australian pound. At this time, it was pegged to the Great Britain pound sterling at 2.5 dollars to one pound. In 1967, Australia abandoned the sterling peg and pegged to the U.S. dollar at .8929 Australian dollars to one U.S. dollar. In 1976, it became a moving peg to a trade-weighted index, and in December of 1983, the Australian dollar was allowed to float.
As of 2016, the Australian dollar ranked as the fifth most traded currency in the world, according to worldwide foreign exchange transactions, accounting for approximately 6.9% of trade. The high trading is due in part to Australia's political and economic stability and to the government's limited intervention in the foreign exchange market.