What is the currency of Australia?The currency of Australia is referred to as the Australian dollar. Conventionally, the currency rate of Australia is expressed in terms off US dollars although any standard currency converter can be used to ascertain the equivalent Australia currency money exchange rates. The Australian dollar is the sixth most traded currency in the world and accounts for 6.7% of global foreign exchange transactions. The dollar to aud (USD/AUD pair) is the fourth most traded currency pair in the world.As a commodity producing and exporting country, the Australian dollar has appreciated in recent times in response to demand for its exports such as coal, iron ore, gold, crude oil, liquid natural gas and base metals. Demand has been fuelled by worldwide growth and the boom in countries such as India and China. The economic conditions affecting Australia have also been favorable with strong economic growth, low employment and attractive interest rates. Favorable interest rate differentials have encouraged capital inflow from carry trade based investments.Despite this, the money exchange rate of Australia is very much dependent on the conditions affecting global markets. In recent times, the sub prime market turmoil that has gripped America and extended to Europe has also been felt in Australia. This has affected equity market values and indirectly the exchange rate. The carry trade, whereby investors and traders borrow in low interest rate currencies such as the Japanese Yen to purchase Australian assets such as shares, has been subject to unwinding during turbulence. When shares are sold the proceeds are converted out of Australian dollars and back into the Yen. This puts upward pressure on the Yen and downward pressure on the currency rate of Australia.US investors who want to gain exposure to the Australian dollar can consider purchasing a position in the Currencyshares Australian dollar Trust ETF. This is traded on the New York Stock Exchange and can be bought and sold the same way as traditional shares. Investors can also consider the Everbank range of products which have a range of deposit based accounts with different exposure to the Australian dollar. The Australian dollar worldcurrency CD can be taken out for (3-6-9-12 month) terms which pay a rate of interest with upside exposure to the Australian currency money exchange rate. The Commodity Index CD, Geographic Index CD, Investors Opportunity Index CD, Pas-Asian Index CD, Prudent Central bank Index CD and World Energy Index CD’s all have a percentage allocation towards Australian dollars. These accounts are FDIC insured. More aggressive speculators can consider options, forex, warrants or futures as a way to capitalize on changing currency market dynamics.