"The AUD would not make their way offshore as in the case of the USD printed by the Fed."
The only money that can make its way offshore is that portion of money called Federal Reserve Bank Notes, Unites States Notes, etc, which form a very limited part of the US stock of money. The rest never gets out of the US banking system.
What happens is that some part of the US stock of money is being held in the name of foreigners including foreign individuals and institutions located, for instance, in Europe and elsewhere. If these foreigners decide to repatriate their funds then they have to go to the Forex markets and change their dollars for euros, yens, Aussie dollars, etc., bringing the value of the US dollar down unless foreign central banks do come to the rescue as a week dollar would not be for competitive reasons very much appreciated.
