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Is the Aud depreciating?

First of all we would like to note that it is easy to forget that currency appreciation and depreciation works both ways – it is not only the case that the AUD is depreciating but other currencies are appreciating. The Australian dollar has been weak recently due to a number of factors, including: Weak commodity prices.

What causes a depreciation in Australia?

Demand for Australian assets declines, leading to a decrease in demand for Australian dollars and an increase in supply. Both of these factors lead to a depreciation.

What does AUD/USD stand for?

For instance, the value of the Australian dollar (AUD) relative to the US dollar (USD) is often abbreviated to AUD/USD. It measures how many US dollars are required to purchase one Australian dollar.

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