AUD (Australian Dollar)


DEFINITION of 'AUD (Australian Dollar)'

The currency abbreviation for the Australian dollar (AUD), the currency for the Commonwealth of Australia. The Australian dollar is made up of 100 cents and is often presented with the symbol $, A$, or AU$. The Australian dollar is also the currency for Pacific Island states of Nauru, Tuvalu and Kiribati.

BREAKING DOWN 'AUD (Australian Dollar)'

The Australian dollar was first seen on February 14, 1966, when it replaced the Australian pound. At this time, it was pegged to the Great Britain pound sterling at 2.5 dollars to one pound. In 1967, Australia abandoned the sterling peg and pegged to the U.S. dollar at .8929 Australian dollars to one U.S. dollar. In 1976, it became a moving peg to a trade-weighted index, and in December of 1983, the Australian dollar was allowed to float.

The Australian dollar is a highly traded currency and as of 2008, ranked sixth in the world according to worldwide foreign exchange transactions, accounting for approximately 4-5% of trade. The high trading is due to high interest rates in Australia and a relatively stable government, which has limited intervention in the foreign exchange market.

  1. Australian Financial Markets Association ...

    The bank bill interest rate is the wholesale interbank rate within ...
  2. Currency

    A generally accepted form of money, including coins and paper ...
  3. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  4. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  5. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  6. Forex - FX

    The market in which currencies are traded. The forex market is ...
Related Articles
  1. Options & Futures

    A Primer On The Forex Market

    Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.
  2. Forex Education

    A Forex Trader's View Of The Aussie/Gold Relationship

    We look at why this relationship exists and how you can use it to produce solid gold returns.
  3. Forex Education

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  4. Forex Education

    8 Basic Forex Market Concepts

    We go over some of the things you need to understand before you can trade currencies.
  5. Forex Education

    Forex: Identifying Trending And Range-Bound Currencies

    Gain a trading edge by learning how macroeconomic forces play out differently for various pairs in the forex market.
  6. Forex Education

    The New World Of Emerging Market Currencies

    Take advantage of foreign currency markets without stepping out of your house.
  7. Economics

    Calculating Days Working Capital

    A company’s days working capital ratio shows how many days it takes to convert working capital into revenue.
  8. Professionals

    Career Advice: Accountant Vs. Controller

    Learn about the differences between controllers and accountants, how the two are related and which is the best career choice for aspiring bookkeepers.
  9. Stock Analysis

    The Biggest Risks of Investing in Caterpillar Stock

    Learn about the primary risks faced by Caterpillar's investors. Discover why global macroeconomic cycles and currency fluctuations are important risk factors.
  10. Professionals

    What is Cash Basis Accounting?

    Cash basis accounting recognizes revenues and expenses at the time cash is paid or received.
  1. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Full Answer >>
  2. Who decides when to print money in India?

    The Reserve Bank of India, or RBI, manages currency in India. The bank's additional responsibilities include regulating the ... Read Full Answer >>
  3. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  4. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
  5. Are dividends considered an expense?

    Cash or stock dividends distributed to shareholders are not considered an expense on a company's income statement. Stock ... Read Full Answer >>
  6. Do dividends go on the balance sheet?

    The only account recorded on the balance sheet, when dividends are declared and before they are paid out to a company's shareholders, ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  2. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  3. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  4. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  5. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
  6. Cost Of Funds

    The interest rate paid by financial institutions for the funds that they deploy in their business. The cost of funds is one ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!