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In the youtube tutorial, Eddie the magic monk shows how to convert dates from American format (month/day) to Australian format (day/month) using Excel. He opens a CSV file called test data in Excel and explains the differences in date formatting between the two countries. To convert the dates, he creates a new Excel file named "date converted" and imports the data using the "from text csv" option in the data menu. This process transforms the data before putting it into the spreadsheet. Eddie demonstrates this step by choosing the folder with the CSV file, and shows that the first column contains the dates to be converted.