About Tipo de Cambio Real (AUD)
The real effective exchange rate (REER) for Australia adjusts the nominal aud exchange rate for inflation differentials with trading partners. It measures the true competitiveness of Australia's exports.
Why FX traders watch it
A rising REER means Australia's goods and services are becoming more expensive in real terms relative to its trading partners, potentially weighing on export competitiveness and the trade balance.
How to interpret the data
An overvalued REER is a warning sign: if Australia's exports become uncompetitive, the nominal aud may eventually depreciate to restore equilibrium. An undervalued REER can attract merger and acquisition (M&A) activity from foreign buyers.