Some currency speculators believe the AUD is responsive to sentiment regarding the global economic outlook.

Question

Quizplus · Accepted Answer

Currency speculators often observe that the AUD is sensitive to changes in global economic conditions and sentiment, as it is a commodity currency heavily influenced by global demand for commodities such as iron ore and coal, which are key exports for Australia. Therefore, shifts in global growth expectations and risk appetite can impact demand for these commodities and affect the Australian dollar's exchange rate.

Some Currency Speculators Believe the AUD Is Responsive to Sentiment