Unformatted text preview: • 200 times NYSE volume.
• Approx. 2% represents trade-related transactions. The
other 98% are capital movements and strategic positions
taken by banks.
taken • The Australian dollar (AUD or A$) is one of the
more actively traded currencies in the world.
– Average daily turnover in the Australian Forex Market typically
> $A100 b, with ≈ ½ against the $A.
– Australian exports + imports for an entire year amount to only
around $A300 b !
– Approximately ⅔ of the trading volume is between foreign
exchange dealers and banks overseas. • The price paid to exchange one currency for
another is called the ‘exchange rate’.
– For example, the exchange rate between the Australian
dollar (AUD or A$ ) and the United States dollar (USD or
US$) may be quoted as A$1 = US$0.67, meaning we
can exchange one Australian dollar to get 0.67 of a USA
(For easy reference, when a ccy is quot...
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- Fall '13
- Exchange Rate, Foreign exchange market