Australian Dollar Basics

How to turn US money into Australian currency
By Lisa Maloney Australia circulates its own sovereign currency: The Australian dollar. If you're planning to take part in any local transactions, you need to understand how and where to get Australian money. As with any foreign currency, Australian dollars are bought and sold like other products, and their value can change over time.

Your transactions will be faster and easier if you also have some passing familiarity with the currency you're about to start trading. Australian dollar basics that you should know before you start trading in this foreign currency include:

1. How to recognize Australian banknotes (their word for "bill") and coins;

2. What Australian dollars are worth against other world currencies;

3. How to purchase or trade for Australian dollars.

Identify legal banknotes by gathering basic Australian dollar information

Australian currency looks and feels a bit different from US currency, mainly because of its sizing and coloring. You'll also notice that Australian transactions are always conducted in five cent increments, because that is the smallest denomination of coin in circulation.
Try:  Get used to some of the differences between how US and Australian money is configured with a helpful overview of Aussie currency from About.com. MelbourneAustralia.com.au describes each denomination of Australian currency--both coins and banknotes--in great detail.

Become familiar with Australian dollar exchange rates

You may get more Australian dollars for your US dollars on one day and fewer on another because the value of Australian dollars against other world currencies fluctuates as the currencies are traded on world markets. If you're looking to trade the Australian dollar, chart displays of how the exchange rate varies over time will help you decide whether it's favorable to trade now or wait a little while.
Try:  XE's Universal Currency Converter, which lets you calculate the value of other world currencies against the Australian dollar. Check out the easy-to understand graph at x-rates.com, which demonstrates how the Aussie dollar to US dollar exchange rate varies over time.

Learn about Australian dollar swap trading

While simply using your debit or credit card at an Australian ATM may be the simplest way to get a good Australian dollar exchange rate, you're not always guaranteed a working ATM or that your bank won't deny the transaction. You can swap trade, or exchange the Australian dollar for other currencies, at a number of other institutions--the key is knowing where to go.
Try:  You can buy the Aussie dollar at current Australian dollar swap rates from many large banks, at money changers in international airports, or you can order foreign currency--including the Aussie dollar--online from American Express. If you happen to be an AAA member, you can also purchase foreign currency from them online or over the phone.

• As with many currencies, most money changers will buy back your left-over Australian currency, but they will only deal in banknotes, not coins; so make sure to use up as many of your leftover Australian coins as possible before departing Australia, or save them for your next trip.