Australian Dollar

Detailed information and fundamental factors

Central Bank: Reserve Bank of Australia

Interest Rate: 1.50%

Public Debt to GDP Ratio, 2019: 47.1%

Trade Balance, 2019: $9.1 bln.

Inflation, 2019: 2%

Supporting Factors

Major commodity exporter – medium

High-yielding interest rates – weak

Factors of Weakness

Domestic housing bubble

The Australian dollar is the official currency of the Commonwealth of Australia. It is often called the Aussie by Forex traders. The currency was implemented in 1966 and allowed to freely float at 1983. Australia has an export-driven economy (the mining sector represents 19% of GDP), therefore the value of the Aussie depends on commodity prices. Australia has strong trading ties with Asia, particularly China, so economic growth in that region has a particularly strong impact on Australia’s currency. The Aussie is used in carry trade because of the relatively high interest rates in Australia.