Lexi Webster
Australia's currency is the Australian dollar (AUD), which is subdivided into 100 cents. The Australian dollar is a decimal currency, which was introduced on February 14, 1966, to replace the Australian pound. The $ symbol precedes the amount, and the currency comes in polymer (plastic) notes of $5, $10, $20, $50, and $100. Coins are in 5, 10, 20, and 50-cent denominations, as well as $1 and $2 denominations. The Australian dollar is the fifth most traded currency in world foreign exchange markets and is also a reserve currency.
| Characteristics | Values |
|---|---|
| Currency Name | Australian dollar |
| Symbol | $ |
| ISO Code | AUD |
| Subunit | Cent (100 cents = 1 dollar) |
| Commonly Used Banknotes | $5, $10, $20, $50, $100 |
| Commonly Used Coins | 5, 10, 20, 50 cents, $1, $2 |
| Exchange Rate with USD | 1 AUD = 0.67 USD |
| Global Ranking (2016) | 5th most traded currency |
| Popularity among Traders | High |
| Credit Card Acceptance | MasterCard and Visa widely accepted, limited acceptance of American Express |
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What You'll Learn
Australian dollar history
The Australian dollar (AUD) is the official currency and legal tender of Australia, including its external territories, and three independent sovereign Pacific Island states: Kiribati, Nauru, and Tuvalu. It was introduced as a decimal currency on 14 February 1966, replacing the non-decimal Australian pound. The conversion rate was set at two dollars for one pound (A£1 = A$2).
The Australian dollar is subdivided into 100 cents and the $ symbol precedes the amount. On the introduction of the currency, the $ symbol was intended to have two strokes, but the version with one stroke has always been acceptable. In 1966, coins were introduced in denominations of 1 and 2 cents (bronze); 5, 10, and 20 cents (cupronickel); and 50 cents (silver, then cupronickel). The 80% silver 50-cent coins were no longer minted after March 1968 as the intrinsic value of the silver content rose above the face value of the coins. Aluminium bronze 1-dollar coins were introduced in 1984, followed by 2-dollar coins in 1988, replacing the banknotes of that value. The 1 and 2-cent coins were discontinued in 1991 and withdrawn from circulation in 1992; since then, cash transactions have been rounded to the nearest 5 cents.
The Royal Australian Mint, which produces Australia's coins, has an international reputation for producing quality numismatic coins. It first issued commemorative 50-cent coins in 1970, commemorating James Cook's exploration along the east coast of Australia. This was followed by a coin for Queen Elizabeth II's Silver Jubilee in 1977, the wedding of Charles and Lady Diana in 1981, the Brisbane Commonwealth Games in 1982, and the Australian Bicentenary in 1988. Commemorative designs have also been featured on the circulating two-dollar, one-dollar, and 20-cent coins.
In 1967, Australia abandoned the sterling standard and pegged the Australian dollar to the US dollar at the rate of 1 AUD = 1.12 USD. This was due to Australia's historical ties and view of the stability of the British pound. AUD was the legal tender of Papua New Guinea until 1975 and the Solomon Islands until 1977. In 1983, Australia moved away from a fixed exchange rate, instead valuing the dollar against a basket of currencies called the trade-weighted index (TWI) to reduce fluctuations.
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Australian dollar denominations
The Australian dollar (AUD) is the official currency of Australia and its external territories, including Christmas Island, Cocos Islands, Norfolk Island, Kiribati, Nauru, and Tuvalu. The Australian dollar is also accepted in some countries as legal tender.
The Australian dollar was introduced as a decimal currency on 14 February 1966, replacing the non-decimal Australian pound at a conversion rate of two dollars to the pound (A£1 = A$2). The $ symbol is used to denote the Australian dollar, with the amount following the symbol.
The Australian dollar is subdivided into 100 cents and has coins in denominations of 5, 10, 20, and 50 cents, as well as $1 and $2 coins. The $1 and $2 banknotes were replaced by smaller coins of the same denomination in 1984 and 1988, respectively. The 1c and 2c coins were withdrawn from circulation in 1992.
The Australian dollar also has polymer (plastic) notes in denominations of $5, $10, $20, $50, and $100. The $5 note was introduced in 1967, followed by the $50 note in 1973 and the $100 note in 1984. All previous notes of the Australian dollar remain legal tender, even though they are no longer printed.
The Royal Australian Mint, responsible for the coins of the Australian dollar, has a reputation for producing high-quality numismatic and commemorative coins.
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$79.99
Australian dollar exchange rate
The Australian dollar (AUD) is the official currency of Australia, which is subdivided into 100 cents. The currency was introduced in 1966, replacing the Australian pound, with a conversion rate of two dollars to the pound.
The Australian dollar is the fifth most traded currency in world foreign exchange markets, behind the US dollar, the euro, the Japanese yen, and the pound sterling. It is popular with currency traders due to a variety of factors, including the comparatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, and the general stability of Australia's economy and political system.
The Australian dollar is a reserve currency, and economists posit that commodity prices are the dominant driver of its exchange rate. This means that the Australian dollar's exchange rate varies significantly during the business cycle, rallying during global booms as Australia exports raw materials, and falling during recessions as mineral prices slump or when domestic spending overshadows export earnings.
The exchange rate of the Australian dollar against other currencies, such as the US dollar (USD), can be found on various websites and currency converters. The rate fluctuates over time, with the USD generally being about 9-40% stronger than the AUD. As of March 2025, one USD was approximately equal to 1.52 AUD, while one AUD was worth about 0.67 USD.
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Australian dollar as a reserve currency
The Australian dollar (AUD) is the official currency and legal tender of Australia, including all of its external territories, and three independent sovereign Pacific Island states: Kiribati, Nauru, and Tuvalu. It is subdivided into 100 cents, and the $ symbol precedes the amount.
The Australian dollar is a reserve currency and one of the most traded currencies in the world. In April 2022, it was the sixth most-held reserve currency in global reserves. The Australian dollar is popular with currency traders due to comparatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, and the general stability of Australia's economy and political system.
The Australian dollar is also considered a safe-haven currency, which is a term used to describe a foreign currency held in significant quantities by central banks or other monetary authorities as part of their foreign exchange reserves. In January 2011, the Central Bank of Russia announced that it would begin keeping Australian dollar reserves. This was due to several factors, including the relative lack of central bank intervention in Australia, and the general stability of the Australian economy and government.
The Australian dollar has also played a significant role in the Asia-Pacific region, similar to the role played by the Canadian dollar in the economy of the Americas. The Australian dollar is also the dominant currency in Tuvalu and Kiribati, which are former colonies of the British Empire.
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Credit cards in Australia
The Australian dollar (AUD) is the official currency of Australia. It was introduced as a decimal currency on February 14, 1966, replacing the non-decimal Australian pound. AUD is one of the most traded currencies in the world, and it is popular among currency traders due to various factors such as high interest rates in Australia and the stability of its economy and political system.
In Australia, there is a range of different types of credit cards available on the market. The 'best' credit card for an individual will depend on the type of credit card desired and their financial situation. Credit cards are available from a variety of providers, including American Express, CommBank, and Mastercard.
When choosing a credit card, it is important to consider the interest rates, annual fees, and perks offered. Low-rate credit cards, for example, typically have lower interest rates but may not offer perks such as complimentary insurance or rewards points. No-annual-fee credit cards, meanwhile, tend to be more basic and do not charge an annual card fee.
Some credit cards in Australia offer rewards points or Qantas Points for purchases, particularly for international transactions and at major Australian supermarkets, department stores, petrol stations, dining, and utilities. Additionally, some credit cards provide travel insurance coverage for return trips from Australia when a certain amount is spent on prepaid travel transactions.
It is worth noting that certain credit cards, such as Discover, may not be widely accepted in Australia. Mastercard and Visa are commonly accepted, followed by Diners Club cards, while American Express has limited acceptance.
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Frequently asked questions
The Australian currency is called the Australian dollar (AUD).
The Australian dollar comes in polymer (plastic) notes of $5, $10, $20, $50 and $100. Coins are in 5, 10, 20 and 50 cent denominations as well as $1 and $2 denominations.
The exchange rate of AUD to USD varies, although generally, the USD is about $.09-$.4 stronger than the AUD. As of March 2025, $1.00 USD is equal to approximately $1.52 AUD.
MasterCard and Visa are widely accepted in Australia, followed by Diners Club cards. American Express is accepted in limited places. Discover credit cards are generally not accepted.
