The best answer to your question would to be what the interest rates are like in Australia itself.
The Reserve Bank sets the target ‘cash rate’, which is the market
interest rate on overnight funds. It uses this as the instrument for
monetary policy, and influences the cash rate through its financial
market operations. Decisions regarding the cash rate target are made
by the Reserve Bank Board and explained in a media release announcing
the decision at 2.30 pm after each Board meeting. (Prior to December
2007, media releases were issued only when the cash rate target was
How Rates Are Calculated
Each central bank's board of directors controls the monetary policy of its
country and the short-term prime
interest rate that banks use to borrow from each other. When the
economy is doing well, interest rates are hiked in order to curb
inflation and when times are tough, cut rates to encourage lending and
inject money into the economy.
What I suggest you do
Have a look at this from graph from http://www.rba.gov.au/monetary-policy/int-rate-decisions/
I would then go to a website that allows you to compare, graphically, whichever interest rate you want.(Or you could get the raw data and run some analysis, to each his own)
- I would choose some sort of Australian LIBOR rate and then compare it to the currency.
FYI, this topic (FX) is incredibly complex and I hope my answer satisfies your needs.Otherwise, talk to a quant. You will need a ton of data inputs to model the entire economy of Australia to try and predict what the central bank will do, which is what people try and do everyday.
Best of luck!