AUD currency characteristics
Australia’s new version of plastic banknotes was used after nearly 30 years of research and development. It uses polyester materials to replace paper, which is wear-resistant, not easy to break, not afraid of rubbing, and has a long service life and a firm hand feeling. It has good anti-counterfeiting characteristics.
The main characteristics of Australian cash can be briefly summarized as follows:
Currency name: Australian dollar (AUSTRALIAN DOLLAR)
Currency Symbol: AUD
Currency carry: 1 Australian dollar = 100 cents (CENTS)
Banknote denominations: 5, 10, 20, 50, 100 yuan.
Issuing agency: Reserve Bank of Australia (RESERVE BANK OF AUSTRALIA)
Factors affecting the Australian dollar
The Australian dollar, abbreviated as the Australian dollar ("Aussie" in English): The Australian dollar is also known as the "commodity currency." Its exchange rate is closely related to the prices of commodities such as gold, copper, nickel, coal, and wool, which account for Australia's total exports. Nearly 2/3 of it. Therefore, the trend of the Australian dollar is usually strongly influenced by the price trends of these commodities. The Australian dollar often finds support in an inflationary economic environment when commodity prices are soaring. For example, when the price of gold rose in 2002, the Australian dollar exchange rate also increased. In the summer of 2002, when the metal price was corrected, the Australian dollar also corrected. Both rose again in the fourth quarter of 2004.
On the other hand, Australia's close relationship with the Japanese economy (Japan absorbs 20% of Australia's exports) and the Eurozone economy can explain why the Australian dollar follows the euro and the yen trend. For example, in the foreign exchange market, the anti-correlation relationship between the exchange rate of the Australian dollar against the US dollar and the exchange rate of the US dollar against the Japanese yen is easier to identify. The Australian dollar exchange rate to the US dollar is expressed in the same format as the euro to the US dollar and the British pound to the US dollar, indicating how much US dollars 1 Australian dollar corresponds to.
Reserve Bank of Australia: According to the Reserve Bank Act of 1959, the Reserve Bank of Australia obtained the status of the Central Bank of Australia. The main task of the Reserve Bank is to maintain the stability of the Australian dollar exchange rate and maintain full employment. In 1993, the Reserve Bank of Australia gained the power to operate independently. At the same time, the Reserve Bank’s work goal was also determined, that is, the target of controlling the medium-term annual growth rate of inflation at 2-3%. The reason for setting medium-term rather than short-term inflation targets is to encourage healthy and sustainable economic growth.
Reserve Bank Committee
The Reserve Bank Committee is responsible for setting monetary policy. Except for January of each year, the Committee holds a monetary policy meeting on the first Tuesday of each month. The results of interest rate decisions are generally announced on the second day of the meeting. The committee consists of 9 members, including the Governor of the Reserve Bank, the Deputy Governor, the Secretary-General of the Ministry of Finance, and six other external members appointed by the Minister of Finance. The term of office of the president and vice presidents is up to 7 years and can be re-elected. The duration of office of 6 external members is up to 5 years.
The most important monetary policy tool of the Reserve Bank is the overnight money market interest rate, or cash rate target. The cash rate is the overnight loan interest rate between the two financial institutions.
Chancellor of the Exchequer
Although the Reserve Bank of Australia gained the power to operate independently in 1993 and set inflation targets, the governor and deputy governors of the Reserve Bank still need to be appointed by the Chancellor of the Exchequer.
Australian Stock Exchange Trading Hours
Monday to Friday 10:00-16:05 (local time)
8:00-14:05 (Beijing time)