Can anyone tell me where is the best spot to exchange American Dollars with Australian Dollars? Also, Do they take American Dollars over there (just around Sydney)?

Thanks in advance

You don't really need any cash. They widely accept all major credit cards. Just make sure to use the cards without foreign transaction fees and notify the credit card company about your travel dates. There are exchange counters at Sydney airport if you really want to use cash. But exchange fees are hefty. I think they took some $3 commission for $50 exchange. 

Thank you so much for the reply,I dont want my credit card company to charge me hefty fees either. Can we go to the local banks there and exchange it in decent rate?

the best way to do is use the ATM there. I used BOA debit card, and they charged nothing. However, BOA charged 3 dollar for every transaction. so just use atm one time and you will be fine. Dont forget, Sydney is expensive...

Thanks my bank said they will charge 1% of every transaction. And my credit card company said they will charge 3% of total transactions. I prefer using cash, I guess I will just use my ATM like you said and pull some money out at the airport's ATM when I get there.