Australian Dollar (AUD)
The Australian Dollar (AUD) is the world’s fifth most traded currency, and the second youngest among the top five, after the Euro (EUR). It was introduced in 1966 when it replaced the Australian Pound at a rate of two Dollars to the Pound.
Key Info
Currency code: AUD
Currency symbol: $ (Dollars), c (cents)
Nickname: The ‘Aussie’
Affiliated central bank: Reserve Bank of Australia (RBA)
Key currency pairings: AUD/USD, AUD/EUR, AUD/GBP
Denominations:
Coins: 5c, 10c, 20c, 50c, $1, $2
Notes: $5, $10, $20, $50, $100
Where is the Australian Dollar Used?
The Australian Dollar is used throughout Australia, including its external territories: Christmas Island, the Cocos (Keeling) Islands, and Norfolk Island. It’s also the official currency of three island states in the Pacific Ocean: Kiribati, Nauru, and Tuvalu.
What Affects AUD Exchange Rates?
The Australian Dollar is a complex currency, affected by multiple factors, so sometimes it can be hard to decipher what’s going on.
That said, there are four main factors that drive AUD movement.
Risk Appetite
As a risk-sensitive currency, the ‘Aussie’ often trades in relation to the global market mood. When investors are feeling pessimistic, perhaps due to slowing global growth, geopolitical tensions or rising interest rates, AUD tends to weaken. When the mood is more upbeat, AUD often climbs.
Reserve Bank of Australia
As with most currencies, AUD is affected by the monetary policy of its governing central bank. In Australia this is the Reserve Bank of Australia, or the RBA. When the RBA raises interest rates, this is likely to boost the Australian Dollar, as higher interest rates attract investors.
Commodity Prices
The ‘Aussie’ Dollar is a commodity-linked currency, with its value correlated to certain materials trading on global markets. In particular, the prices of iron ore, coal, petroleum gas and gold – Australia’s most important exports – impact AUD. When these commodities strengthen, the ‘Aussie’ tends to rise too.
Australian and Chinese Economies
Finally, news about Australia’s economy also influences AUD. When the country’s economy is doing well, the currency will likely gain ground; when it’s doing poorly, the ‘Aussie’ Dollar becomes a less attractive investment.
Traders and economists use data releases to gauge the health of the economy, and these publications therefore impact AUD exchange rates. GDP, inflation, unemployment, manufacturing reports and trade balance figures are some of the most impactful.
In addition, the ‘Aussie’ is often traded as a proxy for the Chinese economy. This is because China’s currency – the Renminbi – is tightly controlled and doesn’t fully reflect what’s happening in China. Investors have therefore turned to the Australian Dollar: as China accounts for around 40% of Australia’s exports, the two country’s economies are intertwined.
Latest Australian Dollar News
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Pound Australian Dollar (GBP/AUD) Exchange Rate Flat amid Downbeat Market Mood Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
September 7 2023Pound Australian Dollar (GBP/AUD) Exchange Rate Levels amid Souring Market Mood Article updated 16:25, 7/9/2023: The Pound Australian Dollar … read more
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Pound Australian Dollar (GBP/AUD) Exchange Rate Plunges on Dovish BoE Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
September 6 2023Pound Australian Dollar (GBP/AUD) Slumps as BoE Signals End of Tightening Cycle (Updated 17:00, 6/9/23) The Pound Australian Dollar (GBP/AUD) … read more
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Pound Australian Dollar Exchange Rate Weekly Forecast: GBP/AUD Slumps as UK Recession Risks Rise Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP) Weekly Forecast
September 4 2023The Pound Australian Dollar (GBP/AUD) exchange rate traded erratically last week before sliding as fears over the UK economy sapped demand What’s … read more
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Pound Australian Dollar (GBP/AUD) Exchange Rate Crashed on Signs of Cooling US Jobs Market Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
September 1 2023GBP/AUD Plummets on US Data, Recovers as UK GDP Revised Up (Updated 15:15 01/09/2023) The Pound Australian Dollar (GBP/AUD) exchange rate fell … read more
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Pound Australian Dollar (GBP/AUD) Exchange Rate Surges on Soaring Hawkish BoE Bets Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 30 2023Pound Australian Dollar (GBP/AUD) Rallies on Central Bank Divergency (Updated 30/8/23, 16:50) The Pound Australian Dollar (GBP/AUD) exchange rate … read more
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Pound Australian Dollar Weekly Forecast: GBP/AUD Plunges on Rising UK Recession Fears Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP) Weekly Forecast
August 29 2023The Pound Australian Dollar (GBP/AUD) exchange rate plummeted last week as a deteriorating outlook for the UK economy overshadowed elevated rate hike … read more
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Pound Australian Dollar (GBP/AUD) Exchange Rate Slumps to 10-Day Low Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 25 2023GBP/AUD Rebounds on Australian Dollar Weakness (Updated 19:10, 25/08/2023) The Pound Australian Dollar exchange rate managed to regain some lost … read more
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Pound Australian Dollar (GBP/AUD) Exchange Rate Ticks Higher on Bearish Trade Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 24 2023Pound Australian Dollar (GBP/AUD) Exchange Rate Firms amid Diminished Risk Appetite The Pound Australian Dollar (GBP/AUD) exchange rate is firming … read more
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Pound Australian Dollar Exchange Rate News: GBP/AUD Slips as Poor Data adds to UK Economic Woes Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 23 2023Pound Australian Dollar Exchange Rate Softens on Poor UK PMI Data The Pound Australian Dollar (GBP/AUD) exchange rate plunges on worse-than-expected … read more
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Pound Australian Dollar (GBP/AUD) Exchange Rate Sours as Chinese Stimulus Buoys Risk Sentiment Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 22 2023Pound Australian Dollar (GBP/AUD) Slumps on Improving Market Mood The Pound Australian Dollar (GBP/AUD) exchange rate is slipping as hopes of … read more