The Australian dollar/dollar is the currency pair that encompasses the Australian dollar (symbol $, code AUD) of the Commonwealth of Australia, and the U.S. dollar (symbol $, code USD). The AUD/USD therefore refers to the exchange rate of the Australian Dollar to the U.S. Dollar, that is, the value of the Australian Dollar expressed in U.S. currency. For instance, when the exchange rate for the AUD/USD is 0.75000, this means that 1 Australian dollar is equal to 0.75 USD.
As a rule of thumb, if you are buying US dollars using Australian dollars, you will want to get as high a rate on your AUD/USD as you can. Settling means that when you begin researching for the best AUD/USD exchange rates, you are going to see many different rates. Choose a provider that uses a mid-market rate of AUD/USD and charges a low, transparent exchange fee, so that you are getting the best overall value for your currency exchange.
You might also need to pay a currency conversion fee, meaning that you will get back less in US dollars than expected. The currency rates and fees at Australian airports are some of the worst in the world, so avoid them at all costs if you want the best value for your money.
If you do business with Westpac, there is no correspondent bank fees charged on international payments of more than 10 currencies. You will not have to pay a correspondent bank fee for a foreign currency transfer in Euro, Pound Sterling, New Zealand Dollar, Dollar, or Canadian Dollar. Payments to selected countries are available for amounts of A$1,000 and above, or equivalent in a foreign currency.
The rate provided can also vary depending on the type of transaction involved, and can vary for transactions of more than a specific value. The exchange rates are only indicative, as at the time and date shown, are subject to market movements, and thus are subject to continuous change. The easiest way to check AUD-USD exchange rates is by using our real-time currency converter table, or using a respected online currency converter.
The US Dollar is the most widely used currency for international transactions, as well as being one of the worlds dominant reserve currencies. The Australian dollar (AUD) is the worlds fifth-most traded currency, while the U.S. dollar (USD) is the worlds most traded currency, which results in a highly liquid pairing, with narrow spreads that are usually kept in a 1p – 3p range at most forex brokers. The Australian dollar is popular amongst currency traders due to Australias relatively high interest rates, relative freedom of foreign exchange markets from government interference, general stability of Australias economy and political system, and a popular belief that the Australian dollar offers diversification benefits within a portfolio that contains major global currencies, particularly due to its greater exposure to Asian economies and the commodities cycle. In 1966, the Australian dollar was the fifth-most traded currency on global exchange markets, accounting for 6.9% of global daily shares (down from 8.6% in 2013), behind the U.S. dollar, euro, Japanese yen, and British pound sterling.
Over the following two decades, the Australian dollar reached its highest value at $1AUD – $0.881 US dollars in December 1988, while its lowest value was $0.477 dollars in April 2001. On 15 October 2010, the U.S. dollar rose to full value above the Australian dollar for the first time since the Australian dollar became a floating currency, trading slightly above $1.00 Australian dollars for several seconds. After reaching its seven-year high of 95.74 last month, the AUD/JPY fell back, reaching its lowest point of 87.30, and has been consolidated ever since.
Looking at the chart for the week, todays moving low has put the AUD/USD right back in a swing zone that dates back to July 2020, between 0.6966-0.7005. The daily chart shows the AUD/USD pair is currently struggling around a bearish 20 SMA, with the technical indicators maintaining a bullish tilt, looking to enter positive territory. On the bright side, Gold prices are rising, with spots trading above $1,840 per troy ounce, providing support for The AUD/USD pair.
Historically, The AUD/USD has been affected by interest rate differentials, commodity prices, government credit ratings, and general sentiment and speculation. The 4 largest Australian banks lowered their AUD/USD outlook in 2022 by 5%, however, still forecast the rate will fluctuate around 75-80 U.S. cents.
I think its just a matter of time until we crack, and if we crack past the 2000 dollar level that opens the floodgates for a lot cheaper prices. That means prices are today 1.67 times higher than the average prices since 2000, according to the Consumer Price Index from the Bureau of Statistics.
The dollar has experienced a 2.37 percent annual average inflation rate from 2000 to today, producing cumulative price increases of 67.41 percent. Computing value from the 2000 dollars, the following graph shows how $100 has been worth less in 22 years. Buy Power for $100 in 2000 This chart shows the calculation of the Buy Power equivalent for $100 in 2000 (the tracking price index began in 1922).
With the breakup of the Bretton Woods system in 1971, Australia converted its traditional peg to a floating rate against the U.S. dollar. On December 1983, the Australian Labor Government led by Prime Minister Bob Hawke and Treasurer Paul Keating floated the dollar, the exchange rate reflecting balance of payments and demand and supply on international money markets. At the same time, investors continued to shift toward the U.S. dollar following the Central Banks announcement that a tapering operation might soon start, ending next year.