The Australian Dollar is the monetary system of the Commonwealth of Australia and its external territories; Christmas Island, Cocos (Keeling) Islands, and the Independent Pacific Island states of Kiribati. The currency is also recognized with the dollar sign (A$) or (AU$) which differentiates it from every other denominated dollar currencies. The Reserve bank or Central bank of Australia is the highest bank in Australia which handles the issuing of the Australia currency. The Australian currency was ranked the fifth most traded currency in the world, trading in the world foreign exchange markets behind the US Dollar, Euro, yen and pounds sterling. Since it has a high-interest rate in Australia, it also has a relative freedom of the foreign exchange market from the government intervention, gaining a general stability in the Australia economy and her political system. The currency has a great benefit in the world of currencies because of its exposure to the Asian economy and the commodity cycle that is why is regarded to as the “Aussie Dollar”. The Australian currency is known as a commodity currency due to its excess raw material exports. As a result of this, the AUD is influenced by China and other Asian import markets. Despite the fact that the currency has its relatively high interest rates, the Australian Dollar is often used in carry trades with the Japanese Yen. A carry trade was used as a strategy in which a currency with low interest rate is sold in order to buy a currency with a higher interest rate. Many traders trade with the currency and it is paired with every other currency used also.
The New Zealand dollar (NZD) on the other hand is the medium of exchange and legal tender of the country New Zealand, and other territories in it like; the Cook Islands, Niue, the Ross Dependency, Tokelau, the British territory and the Pitcairn islands. It comes with the sign ($) and code NZD, it is sometimes distinguished from other dominated currencies and always abbreviated with the dollar sign $ and with ‘NZ$’. It was officially called “Kiwi” since New Zealand is commonly associated with the indigenous bird then the dollar coin depicts a kiwi. The indigenous currency was introduced in 1967 and was subdivided into 100 cents making it ten denominations (five coins and five banknotes) with the ten-cent coin as the smallest coin. The currency is one of the most traded currencies in the world, it was formerly New Zealand Pound in 1933 where the pound sterling was divided into twenty shillings and each shilling is equivalent to twelve pence. This makes it more complicated and cumbersome as at 1950. In 1957, a board came up by the Government to find out about the currency and decimalize it. Words like fern, kiwi and zeal were proposed but to avoid confusion the word dollar was chosen. The dollar note was inscribed with a cartoon character called ‘Mr. Dollar’ signifying a huge publicity campaign was placed on the dollar.
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