gbp-aud-bank-notes-and-coins - AUD

The Australian dollar U dollar exchange rate rallied by 0.5% to a high of US$0.69 in early trade on Tuesday. The pair has just eased back slightly and is holding steady at US$0.69 at the time of writing.

The Reserve Bank of Australia (RBA) boosted the Aussie dollar this morning by keeping monetary unchanged. Interest rates will remain at the historically low 0.75% after three cuts this year, thanks to a slight improvement in Australian unemployment figures and a tick higher in inflation. Investors cheered the fact that the RBA are adopting a wait and see approach. Market participants’ expectations of another interest rate cut before the ed of the year has fallen significantly and this, offering support to the Australian dollar.

US — China trade deal optimism also boosted the Australian dollar on Tuesday. A report in the Financial Times said that US officials are debating whether to remove some tariffs on Chinese goods, as a concession to seal a partial deal, possibly even as early as this month.

Given that China is Australia’s largest trading partner any trade deal between the US and China will be good news for the Chinese economy and also the Australian economy. For this reason, the Australian dollar rallies on trade deal optimism.

US Non-Manufacturing Data Under Spotlight

The US dollar was in favour on Tuesday, just less so than the Australian dollar. The US dollar was bounding higher versus a basket of currencies, also on the back of US — China trade deal optimism. The ongoing trade dispute has negatively impacted the US manufacturing sector. Activity in the sector has weakened and factory orders have slumped to the lowest in four months. A trade deal between the US and China could ease the current slump in the US manufacturing sector. This would be beneficial for the US economy and the therefore the dollar.

Today investors will look towards US ISM non-manufacturing numbers. Analysts are predicting that the US service sector expanded in October to a health 53.4, up from 52.6 in September. A strong reading could calm any fears that the slowdown in the manufacturing sector is spilling over into the dominant service sector.


What do these figures mean?
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.

For example, it could be written:

1 USD = 0.6784 AUD

Here, $1 is equivalent to approximately A$0.67. This specifically measures the US dollar’s worth against the Australian dollar. If the Aussie dollar amount increases in this pairing, it’s positive for the US dollar.

Or, if you were looking at it the other way around:

1 AUD = 1.4739 USD

In this example, A$1 is equivalent to approximately $1.47. This measures the Australian dollar’s worth versus the US Dollar. If the US dollar number gets larger, it’s good news for the Aussie dollar. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.