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 hits one month high Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
September 6 2024GBP/AUD exchange rate makes tentative gains The pound Australian dollar (GBP/AUD) exchange rate is trading in a mixed range this morning having … read more
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Pound Australian dollar (GBP/AUD) fluctuates despite UK services expansion Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
September 4 2024Pound Australian dollar (GBP/AUD) wobbles despite UK services growth The Pound Australian dollar (GBP/AUD) exchange rate is rangebound this morning … read more
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Pound Australian dollar (GBP/AUD) exchange rate surges amid risk-off flows Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
September 3 2024Pound Australian dollar (GBP/AUD) exchange rate soars thanks to downbeat trade The pound Australian dollar (GBP/AUD) exchange rate is skyrocketing … read more
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Pound Australian dollar (GBP/AUD) exchange rate attempts rebound Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 30 2024GBP/AUD exchange rate erases part of losses The pound Australian dollar (GBP/AUD) exchange rate is firming today following yesterday’s slump … read more
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Pound Australian dollar (GBP/AUD) exchange rate dips following upbeat Australian CPI Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 28 2024Pound Australian dollar (GBP/AUD) exchange rate slips following Australian inflation data The pound Australian dollar (GBP/AUD) exchange rate is … read more
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Pound Australian dollar (GBP/AUD) exchange rate trends sideways as risk appetite wanes Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 21 2024GBP/AUD exchange rate movement limited amid data dearth The pound Australian dollar (GBP/AUD) exchange rate is trading in a narrow range this … read more
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Pound Australian dollar (GBP/AUD) exchange rate flat following UK and Australian data Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 13 2024Pound Australian dollar (GBP/AUD) exchange rate muted despite several upbeat data releases The pound Australian dollar (GBP/AUD) exchange rate is … read more
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Pound Australian dollar (GBP/AUD) exchange rate extends losses as AU data impresses Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 7 2024GBP/AUD exchange rate sinks as risk appetite improves The pound Australian dollar (GBP/AUD) exchange rate is trending down this morning, as the … read more
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Pound Australian dollar (GBP/AUD) exchange rate rebounds as ‘Aussie’ loses support Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
August 2 2024GBP/AUD exchange rate climbs despite BoE headwinds The pound Australian dollar (GBP/AUD) exchange rate has reversed a portion of yesterday’s … read more
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Pound Australian dollar (GBP/AUD) exchange rate firms as Australian inflation misses forecasts Australian Dollar (AUD) GBP to AUD Pound Sterling (GBP)
July 31 2024GBP/AUD exchange rate rises following AU data release The pound Australian dollar (GBP/AUD) exchange rate is trending higher today, boosted by … read more