Editing Australian dollar (section)

=== Determinants of value ===
In 2016, the Australian dollar was the fifth most traded currency in world [[foreign exchange market]]s, accounting for 6.9% of the world's daily share (down from 8.6% in 2013)<ref>{{cite web |url = http://www.businessinsider.com/the-most-traded-currencies-in-2016-2016-12 |title = Here are the most traded currencies in 2016 |website = Business Insider |first = Jeff |last = Desjardins |date = 29 December 2016 |access-date = 30 June 2017 |archive-date = 7 July 2017 |archive-url = https://web.archive.org/web/20170707135916/http://www.businessinsider.com/the-most-traded-currencies-in-2016-2016-12 |url-status = live }}</ref> behind the [[United States dollar]], the [[euro]], the [[Japanese yen]] and the [[pound sterling]].

The Australian dollar is popular with currency traders, because of the comparatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, the general stability of [[Economy of Australia|Australia's economy]] and political system, and the prevailing view that the Australian dollar offers diversification benefits in a portfolio containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle.<ref name="SMH1" />

Economists posit that commodity prices are the dominant driver of the Australian dollar, and this means changes in exchange rates of the Australian dollar occur in ways opposite to many other currencies.<ref>{{cite web |url = http://www.westpac.com.au/docs/pdf/aw/economics-research/MarketInsights.pdf |publisher=Westpac |title=Westpac Market Insights March 2011 |page=4 |access-date=8 April 2011 |archive-url = https://web.archive.org/web/20110307030949/https://www.westpac.com.au/docs/pdf/aw/economics-research/MarketInsights.pdf |archive-date=7 March 2011 |url-status=dead}}</ref> For decades, Australia's balance of trade has depended primarily upon commodity exports such as minerals and agricultural products. This means the Australian dollar varies significantly during the business cycle, rallying during global booms as Australia exports raw materials, and falling during recessions as mineral prices slump or when domestic spending overshadows the export earnings outlook. This movement is in the opposite direction to other reserve currencies, which tend to be stronger during market slumps as traders move value from falling stocks into cash.

The Australian dollar is a [[reserve currency]] and one of the most traded currencies in the world.<ref name="SMH1">{{cite news |url=https://www.smh.com.au/business/aussie-now-fifth-mosttraded-currency-20100901-14nma.html |title=Aussie now fifth most traded currency |newspaper=[[The Sydney Morning Herald]] |date=2 September 2010 |access-date=19 April 2011 |last=Yeates |first=Clancy |archive-date=5 April 2011 |archive-url=https://web.archive.org/web/20110405073729/http://www.smh.com.au/business/aussie-now-fifth-mosttraded-currency-20100901-14nma.html |url-status=live }}</ref> Other factors in its popularity include a relative lack of central bank intervention, and general stability of the Australian economy and government.<ref>{{cite web |url=http://www.safehaven.com/article/4608/analyzing-the-australian-dollar-up-down-and-under |title=Analyzing the Dollar – Up, Down, and Under |first=Gary |last=Dorsch |date=14 February 2006 |website=SafeHaven.com |access-date=8 April 2011 |archive-date=31 October 2010 |archive-url=https://web.archive.org/web/20101031201958/http://www.safehaven.com/article/4608/analyzing-the-australian-dollar-up-down-and-under |url-status=live }}</ref> In January 2011 at the [[World Economic Forum]] in [[Davos]], [[Switzerland]], [[Alexey Ulyukaev]] announced that the [[Central Bank of Russia]] would begin keeping Australian dollar reserves.<ref>{{cite news |url=http://en.ria.ru/business/20120126/170960429.html |title=Russia to Keep Dollar Reserves From February |date=26 January 2012 |publisher=[[RIA Novosti]] |access-date=27 January 2012 |location=[[Davos]], [[Switzerland]] |archive-date=12 June 2012 |archive-url=https://web.archive.org/web/20120612135834/http://en.ria.ru/business/20120126/170960429.html |url-status=live }}</ref>

{{Most traded currencies}}