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hi there heres a quick video looking at exchange rate data and the ups and downs of the pound against the australian dollar so its quite important to describe the data carefully this is the external value of the pound against the australian dollar its annual average data and you can see that over the last 15 years or so the pound has lost value externally against the australian dollar but some volatility in between both currencies are floating exchange rates between 2006 and 2012 the pound was falling or depreciating against the australian dollar in other words there was a fall in the external value or the external purchasing power of one pound however since 2012 theres been a little bit of a switchback and a pound now buys more australian dollars than they did before just over two in fact in 2015 theres been an appreciation so in floating exchange rate systems we talk about depreciations and appreciations of a currency please avoid using the terms devaluation and revaluation tho