GBPAUD (GBPAUD^)

Pairing – The amount of Australian dollars (AUD) that one can buy for every Great British pound (GBP).

Position

GBP – World’s fourth most traded currency

AUD - World’s fifth most traded currency

Important factors

• Economic factors – Great Britain and Australia boast two of the world’s biggest and most powerful economies, and the strength of each currency often correlates to a large extent with the other. This is predominantly to do with the long, historic relationship between the two countries (The Australian dollar was the Australian pound up until 1966).
• Floating exchange rate – Since December 1983, the Australian dollar has not been a fixed country, and is therefore no longer pegged to the British pound as it was until the mid-1940s.
• Industry – Where Britain has been affected, like most other countries, by the global economic downturn, Australia has managed to remain relatively unscathed, due in no small part to its mining industry, particularly in gold.
• Government intervention – The Australian government traditionally has maintained a hands-off approach to the forex market, causing many traders to see the Australian dollar as a safe forex trading option.