The Australian Dollar (AUD) is the currency of the Commonwealth of Australia and is used as a trading currency in the global financial markets. The AUD is used to purchase and sell other currencies, securities, commodities, and other financial assets. It is also used to fund investments, such as foreign equities, bonds, and other investments. The AUD is also used to hedge against foreign exchange rate fluctuations. As such, it is an important tool for investors and traders in the global financial markets, allowing them to diversify their portfolios and hedge against foreign exchange rate risks.