Understanding the AUD to USD Exchange Rate
The AUD/USD currency pair, affectionately known in institutional trading as the 'Aussie', is one of the five most liquid currency pairs in global foreign exchange markets.
As a major commodity exporter of iron ore, coal, and liquefied natural gas, Australia's currency value is heavily influenced by global industrial demand, commodity pricing, and Chinese economic growth.
Monetary policy decisions by the Reserve Bank of Australia (RBA) and interest rate differentials relative to the US Federal Reserve drive medium-term trends in the pair.