Financial Market: Real Effective Exchange Rates: CPI Based for Australia
CCRETT01AUM661N • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
99.52
Year-over-Year Change
-4.94%
Date Range
1/1/1972 - 6/1/2025
Summary
The Real Effective Exchange Rate (REER) for Australia measures the strength of the Australian dollar relative to a basket of currencies, adjusted for inflation. This metric is crucial for analyzing the international competitiveness of Australia's exports and imports.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The REER for Australia is an index that tracks the value of the Australian dollar against a trade-weighted basket of other currencies, with adjustments made to account for differences in inflation rates between Australia and its trading partners. This provides a more comprehensive measure of the Australian dollar's purchasing power and trade dynamics than the nominal exchange rate alone.
Methodology
The data is calculated by the Bank for International Settlements using exchange rates and consumer price indexes.
Historical Context
Policymakers and analysts use the Australian REER to gauge the country's export and import competitiveness, which informs trade, monetary, and fiscal policies.
Key Facts
- The REER index is based on a trade-weighted basket of 61 currencies.
- Australia's REER reached an all-time high in 2013 due to the mining boom.
- Changes in the REER can impact the profitability of Australian exports and imports.
FAQs
Q: What does this economic trend measure?
A: The Real Effective Exchange Rate (REER) for Australia measures the strength of the Australian dollar relative to a basket of currencies, adjusted for inflation differences.
Q: Why is this trend relevant for users or analysts?
A: The Australian REER is a crucial indicator of the country's international trade competitiveness, which informs policymaking and business strategies.
Q: How is this data collected or calculated?
A: The data is calculated by the Bank for International Settlements using exchange rates and consumer price indexes.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use the Australian REER to gauge the country's export and import competitiveness, which informs trade, monetary, and fiscal policies.
Q: Are there update delays or limitations?
A: The data is subject to the release schedule and methodological changes of the Bank for International Settlements.
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Citation
U.S. Federal Reserve, Financial Market: Real Effective Exchange Rates: CPI Based for Australia (CCRETT01AUM661N), retrieved from FRED.