AFXC survey shows Forex trading in Australia falls 20% YoY

Author Paul Holmes

The Australian Foreign Exchange Committee (AFXC) is a representative forum of the Australian foreign exchange market operating under the sponsorship of the Reserve Bank of Australia (RBA). Membership is drawn from the leading foreign exchange banks and also includes representatives from the Association Cambiste Internationale (ACI) and the Australian Financial Markets Association (AFMA). The Chairman is elected from the Committee and the RBA provides a permanent secretary to the Committee.

Daily trading volumes in the Australian foreign exchange market rose 5.0% in April 2012 from October 2011 in U.S. dollar terms, according to the data released by the Reserve Bank of Australia on Monday.

However, total average daily trading volumes (in all over-the-counter foreign exchange instruments in the Australian market (was US$175.7 billion in April, down 20% compared with a year earlier.

The Australian foreign exchange market is the seventh largest foreign exchange market in the world. The Australian dollar/US dollar exchange rate pair is the fourth most traded currency pair in the global market.

The Australian Foreign Exchange Committee publishes what they describe as a Semi-annual Report on Foreign Exchange Turnover. Average daily turnover has shrunk by a fairly significant 20% to $175.6 billion over the past twelve months according to the figures released today by the AFXC.

Judgements and assumptions can vary on such a fall, however, the one glaring conclusion is that without a doubt Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term investment (as an investment class) has obviously lost a significant level of its appeal during the last twelve months. As to whether or not this is institutional and corporate reduction, or retail clients disappearing in increasing numbers will require further investigation. The semi-annual report from the Australian Foreign Exchange Committee compiles data from 26 financial institutions in Australia's currencies market.

Volume in Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, FX spot transactions and outright forwards in Australia rose 6.0% from October to US$170.2 billion but was approx. 19% lower year on year. The data for cross currency swaps and over the counter options revealed that the volume was US$5.5 billion in April, this is down 19% from October and 39% on year.