Buy custom The Australian Exchange Rate
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These factors are:
The Size of financial flows into Australia
The size of financial flows into Australia from investors who wish to invest in Australia and need to convert their currency into AUD will affect demand for the dollar. The level of Australian interest rates relative to overseas interest rates as well as the level of confidence in the Australian economy will affect the level of capital inflow...
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The level of Australian interest rates relative to overseas interest rates as well as the level of confidence in the Australian economy will affect the level of capital inflow. If Australia has relatively higher interest rates and stronger confidence, then this will encourage capital inflow and increase demand for the AUD...
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