Exchange Rates

Australia's historical exchange rate level

Around $0.70 USD

Share of Australian economic performance tangent to international growth

60%

Australia's currency trading rank

7th most traded in the world

Australia switched from pegged to floating

1983

RBA cash rate vs US Fed rate during COVID

0.1% vs 0.25%

AUD movement January to March 2020

0.70 USD to 0.55 USD

Foreign investment as share of GDP in 2012

9%; 40% of mining profits flow overseas

AUD record high

$1.10 USD in 2011

AUD during GFC

0.96 USD (2008) to 0.64 USD (2009)

Australian superannuation value

$4.5 trillion, 4th largest pension holder

Australian inflation in 2022

7.8%

AUD recovery February 2021

0.80 USD, driven by China's 8.1% GDP recovery

Iron ore price doubling

$100 to $225 per tonne

China's fiscal stimulus

4% of GDP

Share of FOREX transactions done speculatively

95%

Iron ore price elasticity of demand

0.24 (highly inelastic)

Marshall-Lerner sum for Australia

0.76

TWI depreciation March 2020

54 to 49

BOGS growth March–July 2020

25%

Structural unemployment after 2012 (Dutch Disease)

72,000

NPY deficit reduction March–July 2020

44% smaller

Share of NFL denominated in AUD

83%

Last significant RBA intervention

GFC — AUD lost one-third of value, RBA bought $3.3 billion AUD

RBA sales during 2009 recovery

$3.4 billion

RBA bond purchases in 2020

Increased AUD supply, 1–2% depreciation

RBA bond holdings 2024

Reduced over time, bonds allowed to mature, contributing to appreciation

Cash rate corridor

Cash rate is 25bp above RBA lending rate and 25bp below deposit rate (50bp corridor)