There are some of the independent islands such as the Pacific island states that use the currency and include the states of Kiribati, Tuvalu and the Nauru. People often confuse the currency with the United States dollar because it is always abbreviated the same way. However, to bring about the distinction, it is normally abbreviated as A$ or AU$, it is subdivided into 100 cents. The Australian dollar trades in the foreign exchange market globally behind some of the currencies such as the United States dollars, euros, yen and the sterling pounds. One of the things that make the Australian dollar preferred by the traders globally is that Australia has provided a freedom of exchange and there are high-interest rates in the country.
Here had been suggestions in the 1960s that the pounds, shillings and pence be replaced by decimal currencies, and therefore, the state officials were charged with giving a name to their new currency. The prime minister of Australia at that time sir Robert Menzies wished to name the currency royal. Designs were made and then after the decision of the Australian parliament, in the year 1963, it was subdivided into 100 cents. Since the introduction of the Australian pound in 1910, it was devalued in 1931 and was replaced by the dollar in February 1966. And when the sterling pound was devalued against the US dollar, the Australian dollar stood independently and traded against the US dollar at a better rate.