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 Australian dollar TWI will apply from 10 January 2025. The weights are based on the composition of Australia’s merchandise goods and services trade for the 2023/24 financial year. The updated TWI – which includes 18 foreign currencies – contains all currencies in the previous TWI, and the Swiss franc. The Chinese renminbi continues to have the largest weight in the TWI, at 29 per cent. The weight of the US dollar increased by 2½ percentage points to 11 per cent, and it is now ranked second in the TWI (previously fourth). The weight of the Japanese yen decreased by 3 percentage points to 10 per cent, to now rank third in the TWI (previously second). Other changes in individual currency weights are within +/− 1.1 percentage points.

For further details regarding the methodology used for constructing the index, please see ‘TWI – Method of Calculation’.