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Exchange rates

An exchange rate is the price of one currency expressed in terms of another currency.

Exchange rates

As at 4.00 pm, 27 September 2023



Trade-weighted Index


How are exchange rates quoted?

Any exchange rate can be quoted two ways, for example, Australian dollars (AUD) for a unit of foreign currency, or a unit of foreign currency for an Australian dollar.

Most exchange rates are quoted against the US dollar (USD), as it is the most traded currency globally.

The AUD/USD exchange rate gives you the amount of US dollars that you will receive for each Australian dollar that you convert (or sell). For example, an AUD/USD exchange rate of 0.75 means that you will get USD 75 cents for every 1 AUD.

Read our exchange rate definitions and sources

What is the TWI?

The trade-weighted index, or TWI, is the price of the Australian dollar in terms of a basket of foreign currencies based on their share of trade with Australia. This index is often used as an indicator of Australia's international competitiveness. The Reserve Bank calculates and publishes the TWI at 4 pm each business day.

Explore the weights for the TWI

Why do exchange rates matter?

Exchange rates matter to Australia’s economy because of their influence on trade and financial flows between Australia and the rest of the world. The Reserve Bank does not target exchange rates, but it does take them into account when setting monetary policy.

Read the Bulletin article: Understanding Exchange Rates and Why They Are Important

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