Trading the Australian dollar (AUD) against the Canadian dollar (CAD) is quite popular among traders worldwide. One explanation for the pair’s appeal is the ton of knowledge accessible on each country's economic and political aspects, which could all have an effect on the currency pair. As is the case with all currency combinations, there is far more to this correlation than meets the eye.
Prior to the Australian dollar, there was the Australian pound. The nation used sterling for years until the currency was devalued against the US dollar. The country's proximity to Asia has boosted the AUD tremendously because of the trade between the two countries. The AUD's value has risen and fallen in direct proportion to the strength of this relationship.
In the 1850s, the Canadian dollar was introduced. The Canadian pound was the original unit of currency, but the structure was altered to better facilitate trade with the United States. Over time, the Canadian dollar has grown in strength considerably, and the economy of the country is now rated as the 9th largest in the world. Wealth and stability have driven much of this growth, along with a thriving industry of exportable goods.
