In schweser notes, it quotes currency pair in an opposite way. For example, it quotes USD/AUD and says AUD is the base currency. However, the market quotes this as AUD/USD when AUD is the base. While the difference in quotations don’t affect my answers (the “up-the-bid-and-multiply” rule still applies), the way Schweser quotes currency pair confuses me. Can anyone explain this to me? Also, how is currency pair quoted on the exam? Is it the same as how the market quotes or as on the notes?
Blame CFA Institute.
I wrote an article on currency exchange rates that may be of some help here: http://financialexamhelp123.com/currency-exchange-rates/