Description
Australian Dollar (AUD) – Overview and Key Features
The Australian Dollar (AUD) is the official currency of Australia and its external territories, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It is also used in several Pacific Island nations such as Kiribati, Nauru, and Tuvalu. Introduced in 1966, the AUD replaced the Australian pound and became one of the first decimalized currencies in the British Commonwealth.
Known globally by its currency code AUD and symbol $ (often written as A$ or AU$ to distinguish it from other dollar-denominated currencies), the Australian Dollar is one of the most traded currencies in the world, typically ranking in the top five to six by volume. It is heavily influenced by Australia’s economic performance, trade relationships (particularly with China and Southeast Asia), and global commodity prices, especially gold, coal, and iron ore.
The AUD is a free-floating currency, meaning its value is determined by supply and demand in global foreign exchange markets. The Reserve Bank of Australia (RBA) is responsible for issuing and regulating the currency, managing inflation, and stabilizing the economy through monetary policy.
Australia was one of the first countries to introduce polymer banknotes, beginning in 1988. These notes are more durable, secure, and resistant to counterfeiting compared to traditional paper currency. The coins and banknotes in circulation feature important national symbols, prominent Australians, and unique wildlife, reflecting the country’s culture and identity.
Due to Australia’s political stability, sound economy, and relatively high interest rates, the AUD is often considered a “commodity currency” and is favored by traders seeking exposure to global economic trends. Whether for investment, trade, or travel, the Australian Dollar plays a vital role in regional and international finance.
