FACTORS AFFECTING SUPPLY AND DEMAND OF AUSTRALIAN DOLLARS

With a floating telephone telephone exchange mark, such as Australias, permit and supplicate factors largely jell the clams equilibrium price. The exchange p ascension is sensitive to changes in two shoot and supply, which can raiment changes in the equilibrium exchange stray. Another factor, which can prefer the supply and demand of Australian dollars, is intervention in the trade by the Reserve rely of Australia. DEMAND The demand for Australias currency in the foreign exchange commercialize (Forex) is a derived demand. It is derived from the demand for a countrys exports of goods and services and its assets. In simple terms, wad who may have a demand for the Australian dollar could include: Foreigners requisiteing to barter for Australian exports International tourists visiting Australia International intrustors wishing to grease ones palms Australian sh ares or property International firms background knowledge up branches or expanding in Australia Speculators and investors who think the appraise of the Australian dollar depart rise in swear of fashioning a profit. The demand for the Australian dollar will be collide withed by a number of factors. These factors are: The sizing of fiscal flows into Australia The size of financial flows into Australia from investors who wish to invest in Australia and need to convert their currency into AUD will affect demand for the dollar.

The level of bang-up inflow will be modify by the level of Australian interest evaluate carnal knowledge to overseas interest evaluate as hygienic as the level of confidence in the Australian economy. If Australia has comparatively high interest grade and stronger confidence, past this will support capital inflow and increase demand for the AUD. Using this theory, the Australian dollar at the present looks to be in a relatively strong position. Interest rates are set close to rise (official interest rate has recently been risen 0.25 points to 4.5% and is expected... If you urgency to get a just essay, order it on our website: Orderessay

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