Weights for the TWI

The Australian dollar trade-weighted index (TWI) is the price of the Australian dollar in terms of a group (or ‘basket’) of foreign currencies based on their share of trade with Australia. While bilateral exchange rates are the most frequently quoted exchange rates, the TWI provides a broader measure of whether the Australian dollar is appreciating or depreciating against the currencies of its trading partners.

New weights for the trade-weighted index (TWI) of the Australian dollar will apply from 7 July 2022. The weights are based on the composition of Australia's merchandise goods and services trade for the 2020/21 financial year.^[1] The updated index includes a group of 17 foreign currencies. This is one less than in the previous index; the Papua New Guinea kina is not included in the TWI this year based on the method of calculation. The Chinese renminbi continues to have the largest weight in the TWI, and its weight has increased by 4 percentage points in the updated index. Other changes in individual currency weights were mostly within +/- 1 percentage point. For further details regarding the methodology used for constructing the index, please see ‘TWI – Method of Calculation’.