Since 1983 the Australian dollar has been floated, meaning its value, the exchange rate will fluctuate when there are changes in the level of supply of or demand for AUD in the FOREX market.
- When the value of the AUD increases relatively, this is an appreciation.
- When the value of the AUD decreases relatively, this is a depreciation.
Watch the videos to learn how to graph appreciations and depreciations in HSC Economics:
