Forex Trading Australia - Major Economic Indicators
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Australia is amongst the fastest growing trade markets in the world. It has seen growth in annual Gross Domestic Product (GDP) from US$642.7 billion (2005) to US$1025 billion (2009), accounting for 1.64% of the world economy. Its huge reserves of both agricultural and mineral resources are considered by many to be the reason for the nation’s economic success. Despite this, the Australian economy is driven mainly by the service sector.
The market recession, which engulfed the world economies in 2008, has had very little effect on Australia. A strong banking system ensured record year-over-year growth in 2009. It boasts an unemployment rate that is almost half that in the US and other major European countries. The only thing holding back this economy is its huge trade deficit. In 2008, it had a trade deficit of US$2.5 billion, which does not seem likely to shrink any time soon due to weak foreign demand and strong import needs.
Forex Trading Australia: Introduction
The major exports of Australia include wheat and wool as agricultural produce, minerals such as iron-ore and gold, and energy in the form of liquefied natural gas and coal. All its exports are raw products. Its list of imported items includes machinery and transport equipment, computers and office machines, and telecommunication lasers. China, the USA and Japan are some of Australia’s biggest trade partners.
The monetary system of Australia is controlled by the Reserve Bank of Australia (RBA). This bank works to ensure a low inflation economy and efficient payment systems. But often, the trade deficit of the country comes in the way of the people-friendly policy making process. In March 2008, the RBA had to increase its interest rates on loans to 7.25% in order to meet domestic demand. The RBA also enters the forex market to ensure the stability of the Australian dollar in times of high market volatility or when the exchange rates show inconsistency with the economic parameters.
Forex Trading Australia: Major Trading Factors
Australia is the third largest producer of gold in the world. This provides strength to its currency in times when commodity prices increase. It is also a nation that depends heavily on its service sectors. This is a drawback in a way because the services sector is often hampered by severe weather conditions.
The island nation has one of the highest interest rates in the forex market. This has led to its popularity as a carry trade option for several traders.
To get detailed information on economic indicators of forex trading in Australia, visit Forex-RateIt. This is a premium resource sharing portal for the latest news, glossary and trends in the forex market.
About the Author
The author Roy is a forex trader. He finds his interest in Forex trading and writes for forex niche websites. He Recommends forex-rateit.com to get up-to-date information on the forex market, including news, comprehensive forex brokers reviews and educational articles.
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