Exchange rates between the Australian dollar and the US dollar are determined by:

Question

Quizplus · Accepted Answer

Exchange rates between currencies are determined by the supply of and demand for each currency. In the case of the Australian dollar and US dollar, the exchange rate is simply the price of one currency in terms of the other, and this price is determined by the forces of supply and demand in the foreign exchange market. The Reserve Bank of Australia and the US Federal Reserve Board can influence exchange rates through their monetary policies, but they do not determine the rates directly. The Australian Department of Treasury also plays a role in managing the exchange rate, but it does not determine the rate on its own.

Exchange Rates Between the Australian Dollar and the US Dollar