The Australian dollar was pegged to the British pound and then to the US dollar under the Bretton Woods system. Following other changes and pegs, the Australian dollar was floated in 1983. The power to issue banknotes and other central banking responsibilities fall to the Reserve Bank of Australia. In consultation with the Australian government, the bank also helps with currency and financial stability and inflation controls through monetary policy.

The bank board consists of nine members. Meetings will normally occur monthly (with the exception of January) and official policy and information can be found on the bank's official website. Interest rates are considered to be comparatively high, and the historic table can be found on their website for reference and verification.

On the economic front, Australia's services sector accounts for the largest percentage of the GDP (68 percent) while mining and agriculture account for less (10 percent). Australia is rich in natural resources such as iron, gold, natural gas, and coal. Agricultural products are also important and include wheat, cotton, wool, and sugar. When the nation has issues with drought or weak foreign demand for resources during a recessionary period, it can have a negative impact on trade.

The island nation has strong economic ties to Asia and the largest export markets include:

Japan
China
South Korea
New Zealand

Imported goods include machinery, transport, and telecommunication equipment as well as computers and office machines. Main import partners include the US, China, Japan, Singapore, and Germany.

Other key statistics and economic information are released by the Australian Bureau of Statistics and can be viewed online on their official website. According to the Bureau, foreign investment in Australia is led by the United Kingdom, the United States, and Japan.

RBA - abbreviation for the Reserve Bank of Australia, the nation's central bank.

AUD -symbol for the Australian Dollar. A$ might also be used.

Several factors within a nation can have a significant effect on the currency exchange rates and the relative importance of each is the subject of debate, however, it is important to be aware of some of the key fundamentals. Australia's raw and agricultural goods - as well as strengthening ties with China - are likely considerations when reviewing the value of their dollar.

Inflation: It is generally believed that countries with consistently lower inflation exhibit a rising currency value while countries with higher inflation may see currency depreciation.

Interest Rates: High interest rates may attract foreign investors and that can lead to an exchange rate increase while the opposite scenario is possible in a country with low interest rates.

Overall Economic Conditions: Everything from a country's balance of trade to the size of their deficit or surplus can serve as a barometer of the condition of the country and the likelihood of default. Investors look for countries with stronger economic foundations and the better the economic foundation of one country versus another may increase the value of the country's currency. Sovereign credit ratings from places like Moody's or S&P can impact the perception of a nation's growth and stability.

Perception: The so called "flight to quality" exists within foreign currencies as investors will often seek what they perceive as "safe haven" currencies during times of political or economical instability.

Besides the obvious implications and uses for currency, the Australian dollar has investing applications as well. As a financial instrument, Australian dollar futures are often used as a means to hedge currency exchange risk.