Ever wondered why the value of the Australian dollar rises and falls? In this episode, we dive into how Australia's floating exchange rate works and the key factors that drive it—from long-term influences like interest rate differentials, commodity prices, and trade balances, to short-term pressures like global risk sentiment and market speculation. We also explore the role of the Reserve Bank of Australia in stabilizing the currency when markets go off track. Tune in to get a clearer picture of how global forces shape the Aussie dollar and what it means for the economy.
Source: https://www.rba.gov.au/education/resources/explainers/
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