What currency is AUD?

The AUD is most commonly exchanged in global markets with the British pound, and it is a fiat currency. It’s the fifth most traded currency in the world, behind the US dollar, the euro, the Japanese yen, and the pound sterling. The conversion factor for AUD has 5 significant digits.

Is the Aud overvalued?

For the AUD, and using the famous Big Mac Index as the benchmark, the AUD is overvalued against the US dollar, suggesting that the AUD/USD ought to depreciate over time as relative price difference erode. The Australian government’s credit rating can have a marginal impact on the AUD.

Is the AUD/USD exchange rate in agreement with the Big Four?

Other banks in the Big Four were in agreement, with Westpac forecasting the AUD/USD exchange to reach 0.70 by June 2023. That view was optimistic, with the exchange rate coming in at 0.66 as of July 7. In July, the Australian dollar steadied around $0.667 despite the RBA voting to hold the cash rate steady at its July Board meeting.

What drives changes in the Aud's value?

The biggest driver of changes in the AUD's value is the interest rate differential. The interest rate differential is the relative benefit an investor receives from investing in one country’s assets over the other.