The Australian dollar is currently the sixth-most-traded currency in world foreign exchange markets (behind the euro, US dollar, the yen, the pound sterling, and the swiss franc), accounting for about 4–5% of worldwide foreign-exchange transactions. The Australian dollar is popular with currency traders due to high interest rates in Australia, the relative freedom of the foreign exchange market from intervention by the Australian government, the general stability of the economy and political system, and the prevailing view that it offers diversification benefits in a portfolio containing the major world currencies (especially because of its greater exposure to Asian economies and the commodities cycle).

