AUD (Australian Dollar) is the official currency of Australia, including its territories. It is also used as the official currency in three independent Pacific Island states: Kiribati, Nauru, and Tuvalu.
The Australian dollar is a decimal currency, with 100 cents per dollar. The most common denominations of coins are 5 cents, 10 cents, 20 cents, 50 cents, $1, and $2. The most common denominations of banknotes are $5, $10, $20, $50, and $100.
The Australian dollar is a freely floating currency, meaning that its value is determined by supply and demand in the foreign exchange market. The Australian dollar is one of the most traded currencies in the world, and it is heavily influenced by global economic conditions.
Here are some of the factors that can affect the value of the Australian dollar:
The price of commodities: Australia is a major exporter of commodities, such as iron ore, coal, and natural gas. When the prices of these commodities are high, the Australian dollar tends to strengthen.
Interest rates: The Reserve Bank of Australia (RBA) sets the official interest rate for the Australian dollar. When the RBA raises interest rates, it makes it more attractive to hold Australian dollars, which can cause the currency to strengthen.
The global economy: The Australian dollar is also affected by the overall health of the global economy. When the global economy is strong, the Australian dollar tends to strengthen.
