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The Australian Dollar is currently the sixth-most-traded currency in world foreign exchange markets (behind the US Dollar, Euro, Yen, Sterling, and Swiss Franc).
Predominantly, the Aussie Dollar is affected by economic trends and commodity demand in Asia and the Middle East and less so by the Americas and Europe.
When it was introduced in 1966 it was pegged to both Sterling and the US Dollar. However, when Sterling devalued in 1967, the Aussie Dollar did not follow suit. The US Dollar fixed peg later became a moving peg then a moving peg against a basket of currencies until Dec 1983 after which it floated freely.
Aussie Dollar banknotes are unusual in that they are made from polypropylene polymer based plastic which adds to longevity and have a transparent window with an optically variable image of Captain James Cook as a security feature.
The Reserve Bank of Australia (RBA) is responsible for setting monetary policy. The RBA has established a Board (The RBA Board) which makes decisions about interest rates independently of the political process.
