Over the past two decades the Australian dollar has been as low as 48 US cents and as high as US$1.10.
Currency movements occur for many reasons. Different interest rates between countries is a major factor. The price of commodities also plays a big role.
The Australian dollar’s fall from US$1.10 to the mid 70 US cent range was largely due to the end of the mining boom in 2012. Since then, the Aussie dollar has remained relatively strong. That’s due to Australia’s interest rates being marginally higher than other countries, and the perceived strength of the Australian economy.
Everything you need to know about the Aussie Dollar
Understanding the prospects for the Australian dollar is crucial to investors with direct currency exposure, those holding gold and other precious metals (priced in US dollars) and investors in international shares. Here at Markets & Money we keep you up to date with all the latest factors influencing the Aussie dollar.