Describe what and how the FOREX Market Works in Australia
The Foreign Exchange Market is the buying and selling of various currencies. The exchange rate of the Australian dollar is the price of 1 unit (1 dollar) expressed in terms of another currency. The 2 most common measures of the exchange rate used in Australia are:
*The Exchange rate against the US dollar
*The trade-weighted index (TWI)
The measure against the US dollar is important because trading of the Australian dollar in the Forex market is highly concentrated against the US dollar.
The measure of the TWI is a much more accurate one. …
- Describe what and how the FOREX Market Works in Australia
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