The Swedish krona is the official currency of Sweden and ranks ninth in the world in terms of trade, with an average daily volume of 56 million US dollars. Unlike many other currencies, the krona is not the main reserve currency. It is issued by Sveriges Riksbank.
In 2012, a copywriter and amateur artist issued counterfeit coins in denominations of 10 kronas, where the usual quote was replaced with “Vår horkarl till kung”, which translates as “Our whorer of a King”.
Coins were widely publicized and caused mixed reactions from society. The artist said that he is not at all afraid of lawsuits, despite the fact that he is a manufacturer of counterfeit currency.
This fact is interesting in that although the Swedish krona is used only in one country, the currency is one of the most frequently counterfeited.
It is also worth noting that Sweden was one of the last to abandon gold coins. They were in circulation until 1902.
The Australian dollar is the official currency of Australia and ranks fifth among the most traded in the world, with an average daily volume of 174 million USA dollars.
This currency is the sixth most frequently used reserve currency, which is estimated to account for 1.8% of the world currency. It is issued by the Reserve Bank of Australia (RBA).
The Australian dollar is often referred to as the Pacific Peso. In addition, there is no Australian one-dollar banknote – the smallest banknote is five dollars.
The value of the Australian dollar varies greatly depending on the price of gold. This is because Australia is the world’s third-largest exporter of precious metal.
When European settlers first arrived in Australia in 1788, the barter system was used instead of money. The main thing to exchange was rum. The system lasted for almost 100 years.
The value of the krona largely depends on the monetary policy established by Sveriges Riksbank, as well as on the economic indicators of Sweden and its main trading partners – mainly European countries, as well as Norway and the USA.
In addition, as in many other currencies, the terms of trade of the issuing country strongly influence the value of the krona. In the case of Sweden, exports are of particular importance since industrial goods, including cars, engines and telecommunications equipment, account for more than 44% of GDP. Therefore, the demand for krona may fall during a global economic downturn.
The value of the Australian dollar is strongly influenced by commodity prices and the terms of trade – the relationship between import and export prices. Australia is a major exporter of coal, iron, and copper, among other extracted commodities, and a major importer of oil, so changes in trading volume and prices of these commodities may affect AUD.
The value of the currency also depends on the size of the country’s foreign obligations, and an increase here may lead to a drop in the value of AUD in relation to the currencies of the main trading partners.
In addition, any difference between the interest rate of the RBA and the interest rate of other Central Banks may have an effect because the money is likely to go to countries with higher interest rates and countries with lower interest rates.
Most Forex traders know very little about the Swedish economy. Sweden, as a rule, masters technologies very quickly, therefore in this particular pair there is a certain correlation with NASDAQ.
There is also a difference in interest rates when it comes to this currency pair, as interest rates in Australia are lower than in Sweden and the rest of Scandinavia.
In general, the pair is not one of the most popular, but it can bring good profit to traders who are well versed in the market of high technologies and goods. Since they are indirectly interconnected, it is possible to accurately predict the trend for this pair.