USD to AUD

Who sends US dollars to Australia, and why

The people moving US dollars to Australia often have practical reasons. You're probably not a tourist if you're reading this. For example, someone from the US on a working holiday visa in Melbourne needs to shift their savings for rent or living expenses. A parent in the States might be supporting their daughter’s studies at the University of Sydney, while investors move funds to buy a property in Brisbane or shares on the Australian Stock Exchange. Or picture an Australian working in the US, sending money home to pay a mortgage in Perth.

Exporters based in Australia, especially in mining and resources, still receive payments in US dollars, a reflection of how iron ore, coal and LNG are commonly priced. The current mid-market rate is 1.4232, so 1000 US dollars converts to 1,423.24 AUD and 5000 dollars to 7,116.19 AUD before any transfer service or bank takes their share.

Commodity influence on the Australian dollar

The Reserve Bank of Australia makes decisions on interest rates, and since 1983, the Australian dollar (often called the Aussie) has traded freely. Australia’s status as a leading exporter, iron ore, coal and liquefied natural gas, primarily to Asia, means the Aussie tends to track commodity prices and changes in demand from China. Because of this, it also acts as a currency investors turn to when they want more risk; confidence or fear in global markets can shift AUD one way or another compared to the US dollar.

For reference, the financial industry usually quotes the pair the other way around: AUD/USD, so US dollars per Australian dollar. On this page, though, you can see how many Australian dollars a single US dollar buys. Both formats just invert each other. If you'd like to see it the standard way, visit the AUD → USD page.

Across the last year, rates shifted by -6.96%, with the lowest at 1.3798 and the highest at 1.5515. Rate changes most often reflect decisions at the Reserve Bank of Australia or the US Federal Reserve, sometimes it’s economic news out of China that moves things fastest.

How funds reach an Australian bank account

To credit funds into an Australian bank account, you only need the BSB (a 6-digit bank-state-branch code) and an account number. International transfers use these details, just like local payments. In Australia, the New Payments Platform allows truly instant transfers, and you can use a PayID instead of an account number for local payments (such as your mobile or email address), though that’s not available for incoming payments from the US, those still go to the standard BSB and account.

International wires use the SWIFT network. If you go through a provider, they'll often convert US dollars and send the funds using local rails, which can be quicker. There's a significant time difference, a 14-to-16 hour gap between Sydney and New York depending on daylight saving (the timing flips between hemispheres). So, if you send money late in the US afternoon, it will arrive outside Australian business hours and probably be processed the following business day. More on this is available at the value dates and cut-off times page.

Comparing the real cost to convert

Banks typically set their exchange rates quite a way from the mid-market rate, and it’s often the hidden markup that costs more than any listed fee. You can see how this works in our guide on bank exchange rate markup. Also, note whether the sender or receiver pays certain fees; that’s covered in OUR, SHA and BEN charges.

If you’re transferring 1000 US dollars, Wise gives you the lowest cost from our comparisons at the moment and pays out 1,416.19 AUD. If you use Wise, you'd receive 1,416.19 AUD, with a stated fee of 4.95 USD. OFX is designed for more substantial cross-border transfers, with a total charge for 1000 dollars coming to 0.70%. It’s important to run the numbers on the exact amount you’re sending, since fees don’t always increase in a tidy way. The full explanation of how comparisons work appears on the How we compare page.

Timing, public holidays and sending large amounts

While this currency pair trades virtually all week, actual settlement by banks only happens on business days, and activity drops off on weekends. Australia observes its own holidays, like Australia Day on January 26 or Anzac Day in late April, so it’s possible a transfer could be delayed if it lands on a public holiday in either country.

The exchange rate counts for far more than a flat fee when you’re moving substantial sums, say, paying tuition or buying a property. Even a small rate difference will dwarf the visible service charge. Or if you need certainty for a purchase or payment at a precise date, you can arrange a forward contract to lock in today’s exchange rate. And before you send meaningful amounts to a family member, look at tax on remittances for sender and receiver to avoid any tax surprises on either end.

You can also compare with other major dollar pairs: USD → CAD and USD → JPY.