This economics assignment delves into the dynamics of the Australian dollar, examining its value in relation to the US dollar and the trade weight index over a three-year period. The report explores the factors influencing the currency's fluctuations, including the demand and supply dynamics in the foreign exchange market, global commodity prices, and the Reserve Bank of Australia's policies. The assignment further analyzes the impact of the Australian dollar's valuation on business activities, particularly the export of alcoholic beverages to the USA, considering the effects of overvaluation on export revenue. Finally, it addresses strategies the Reserve Bank of Australia could employ to devalue the currency, such as increasing the money supply and manipulating trade levels. The assignment references articles and data from reputable sources like the Reserve Bank of Australia and academic publications to support its analysis.