currency is affected by a nos of complicated factors:
interest rate: if the interest rate is high, ppl would like to get that currency and put it in the bank for high interest return. if the interest rate is low, ppl would like to borrow that currency from the bank at low interest and then exchange to other currency for investment with a high yield.
economy: if the economy of that country is good, ppl would like to do business with or at that country, so ppl need that currency.
inflation: similar to economy
Last but not least, when you consider the above factors, you need to consider them in a relative manner. e.g. when you see the economy of Australia is in a down side, the currency rate may not drop. You have to consider the Australia relative to other country economy (say US economy or EU economy).
That why it is quite difficult to guess the trend of currency rate. You have to be a very good economist, and you have to look after the economy of the whole world. Don't forget, interest rate can be controlled manually by the governments of different country as a mean to adjust the economy and inflation. This political aspect makes the analysis even more complicated.