What is the currency used in Australia?

The Australian currency is the Australia dollar, although in the past it has used the Australian pound and the British pound.

The currency used in Australia is the Australian dollar. This should not be confused with the US dollar – try to US dollars in Australia and you will not get very far. The two currencies are entirely separate – they just share a name.

When did Australia start using the Australian dollar?

Australia started using the Australian dollar in 1966. Before then, the country used the Australian pound, which was pegged to the pound sterling.

The new currency was originally going to be called the royal, but a public backlash saw the government of the day swiftly change plans and call it the dollar instead.

The Australian pound was used from 1910 to 1966. Before 1910, the British pound was the currency of Australia – although you can’t use pounds in Australia now.

Tick off 9 Australian bucket list experiences

Take Blue Mountains day tour from Sydney – with kangaroo-feeding at a wildlife park, Scenic World tickets and a Parramatta River cruise.
Snorkel or dive on the Great Barrier Reef from Cairns.
Do Australia’s most spectacular drive on a Great Ocean Road day tour from Melbourne.
Drive along the beach on a 4WD day tour of Fraser Island, the world’s biggest sand island.
Have a dune-top barbecue dinner and stargazing session in the shadow of Uluru.
See penguins on Phillip Island – and more native wildlife at the Moonlit Sanctuary – on a day trip from Melbourne.
Go snorkelling, sandboarding and kayaking on Moreton Island from Brisbane.
Meet gloriously cute quokkas on Rottnest Island near Perth with a ferry and bike hire package.
Kayak with dolphins in Byron Bay.

Is the Australian dollar pegged to the US dollar?

After the adoption of the Australian dollar, it was decided that the new currency should be pegged to the US dollar rather than the pound sterling. From 1974, the direct dollar peg was removed, and the Australian dollar was valued according to a weighting from a basket of foreign currencies.

In December 1983, the Australian dollar was floated, with its exchange rates set by the international currency markets.

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Australian dollar exchange rate

The Australian dollar exchange rate against other major currencies has fluctuated fairly heavily in the past, although in the fast five years it has been less volatile. Against the pound sterling, the exchange rate has stayed around the A$1 = £0.55 mark.

Against the US dollar, the exchange rate has fluctuated more, but it has usually levelled out to one Australia dollar being around 70 US cents.