1 Australian dollar to US dollars Exchange Rate Convert AUD USD
Our currency rankings show that the most popular Australian Dollar exchange rate is the AUD to USD rate. The AUD/USD currency pair tends to be negatively correlated with USD/CAD, as well as the USD/JPY pair, largely because the dollar is the quote currency in these cases. In particular, the AUD/USD pair often runs counter to USD/CAD, as both AUD and CAD are commodity block curre.
This means despite the recession fears during the past year, the US dollar is still considered to be in a competitive position and to be a safe investment while other “less healthy” currencies decline in value due to global market volatility. Nevertheless, the good times were not to last, and after a steady decline throughout 2023, the Australian dollar was trading at .67 US cents by December 31, 2023. As of February 5, 2024, the dollar had slumped to .65 US cents and by mid-year was slightly higher at .67 cents where it has remained for four months. When covering investment and personal finance stories, we aim to inform our readers rather than recommend specific financial product or asset classes. While we may highlight certain positives of a financial product or asset class, there is no guarantee that readers will benefit from the product or investment approach and may, in fact, make a loss if they acquire the product or adopt the approach.
AUD = 0.65040 USD
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative. Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination.
As of 2019, the Australian dollar ranked as the fifth most traded currency in the world, according to worldwide foreign exchange transactions, accounting for How to buy bat coins approximately 7% of trade. The high trading volume is due in part to Australia’s political and economic stability and to the government’s limited intervention in the foreign exchange market. The Australian economy and the AUD often benefit during periods of rising commodity prices.
The Australian dollar, also known as the ‘buck’, ‘dough’ and ‘aussie’, ranks as the fifth most traded currency in the world. AUD/USD (sometimes written AUDUSD) is the abbreviation for the Australian dollar and U.S. dollar currency pair or cross. The AUD/USD is the fifth most traded currency as of 2022 but the AUD is not one of the six currencies that make up the U.S. dollar index (USDX). The AUD is managed by the Reserve Bank of Australia (RBA) is the central bank of Australia, which sets the country’s monetary policy and issues and manages the Australian money supply. The bank, entirely owned by the Australian government, was established in 1960. Australia also prints polymer banknotes for a number of other countries through Note Printing Australia, a wholly owned subsidiary of the Reserve Bank of Australia.
Trading the AUD/USD currency pair is also known as trading the « Aussie. » On the other hand, the AUD and NZD tend to be positively correlated. The Royal Australian Mint also has an international reputation for producing quality numismatic coins. Issues expanded into greater numbers in the 1990s and the 21st century, responding to collector demand. Commemorative designs have also been featured dynamic trailing stop loss and profit target with machine learning on the circulating two dollar, one dollar, and 20 cent coins.
Convert from Australian Dollar (AUD) to United States Dollar (USD)
The correlation with USD/CAD could also be due to the positive correlation between the Canadian and Australian economies (both resource-dependent). Trading the AUD/USD is also known colloquially as trading the « Aussie. » So in conversation, you might hear a trader say, « We bought the Aussie at 7495 and it rose 105 pips to 7600. » Australia was the first country to produce polymer banknotes,32 more specifically made of polypropylene polymer, which were produced by Note Printing Australia.
Popular Currency Pairings
David is comprehensively experienced in many facets of financial and legal research and publishing. As an Investopedia fact checker since 2020, he has validated over 1,100 articles on a wide range of financial and investment topics. With a mass of 15.55 grams (0.549 oz) and a diameter of 31.51 millimetres (1+1⁄4 in), the Australian 50-cent coin is one of the largest coins used in the world today. Australia’s coins are produced by the Royal Australian Mint, which is located in the nation’s capital, Canberra. Since opening in 1965, the Mint has produced more than 14 billion circulating coins, and has the capacity to produce more than two million coins per day, or more than 600 million coins per year.
Assuming no other changes, the Australian dollar will hold its value, and the relative value of the pair increases due to a strengthening of the Australian dollar when compared to the U.S. dollar. A currency pair tells the reader how much of one currency is needed to purchase one unit of another currency. In this case, the Australian Dollar (abbreviated AUD) is considered the base currency, and the U.S. Dollar (abbreviated USD) is considered the quote currency, or the denomination in which the price quote is given. Since the end of China’s large-scale purchases of Australian commodities in 2013, however, the Australian dollar’s value versus the US dollar has since plunged to $0.88 as of end-2013, and to as low as $0.57 in March 2020.
- The note depicted on one side a young male Aboriginal person in body paint, with other elements of Aboriginal culture.
- A currency pair tells the reader how much of one currency is needed to purchase one unit of another currency.
- Currencies always trade in pairs, with each part of the pair represented by a three-letter abbreviation.
This piece has been expert reviewed and fact checked by Forbes Advisor Australia Board Member, Tim Waterer, who has more than two decades of experience across FX, stocks, indices, and commodities. To the extent any recommendations or statements of opinion or fact made in a story may constitute financial advice, they constitute general information and not personal financial advice in any form. As such, any recommendations or statements do not take into account the financial circumstances, investment objectives, tax implications, or any specific requirements of readers. Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas’ experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.
How does the Trade Balance impact the Australian Dollar?
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. Banks often advertise free or low-cost axi review transfers, but add a hidden markup to the exchange rate. Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers.
