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au_187
Australia and its People › Society
What is the significance of the Australian dollar in relation to the US dollar?
- The Australian dollar is fixed at the same value as the New Zealand dollar
- The Australian dollar is a freely floating currency that fluctuates against other currencies including the US dollar
- The Australian dollar is always worth more than the US dollar
Why this is the correct answer
Australia's dollar is a freely floating currency, meaning its value rises and falls in response to global market forces, trade conditions and investor confidence. It is traded on international foreign exchange markets and fluctuates daily against currencies like the US dollar. Neither the Australian nor US dollar is pegged to the other.