At time being, AUD seems the better option.

There is not single currency to be classified as best selection.

When invested or diversify into another currency, the primary concern is about the health of economy of the particualr country.
The so called good option can change from time to time.

At time being, Australia economy seems quite ok and with commodities price seems firmer, as one of the most important commodities exporter in the world, AUD prospect is ok while with interest differentiate (4% current and expect to go up a few more basic point in the future), one earns more through AUD. 

AUD is seems as a risky trade currency by the market, so when any crisis unfold, investors will flock to USD and dump AUD.

One good about AUD is that RBA is quite hawkish in general. When invested in a currency, you want the particular central bank to be the one pro-active to maintain the value of the currency, not the one hoping currency to depreciate to boost export.

Having said that, AUD is staying at elevated level at time being.
At 0.93 AUD/USD is a big resistance level.

anyway, for me personally, i finished my studies in Melbourne last year, so i've got a few bank accounts in Australia, i closed all but NAB's and Raboplus, as NAB's division UBank offers the highest ongoing savings interest rate, and Raboplus offers pretty competitive rates as well
i'm getting 5.95% for my UBank USaver

In Malaysia if you are not in Malaysia for more than 90 days per calender year, then you are not considered as a tax resident. If you are not considered a tax resident for the year, then all of your income derived overseas (with proof of course) is not considered taxable in Malaysia. For example in year 2008, your total earning is AUD$ 50,000 for example and you have been in Malaysia for only 50 days for example, you can bring all the money back to Malaysia and declare to LHDN, with no tax whatsoever, EVEN though you did not pay Australia's tax. 

Yep, I was employed a couple of years by country A, working in country B, paid by country C into a bank account in country D, which then auto remit back to Malaysia. The tax officer also "pening" when i declared my income, in the end i 'proved' that i am not in the country for more than 90 days, and he declared no taxes need to be paid. 

any oz bank recommendations for term deposit and non-term deposit accounts?     

hmm... not quite sure what you mean here.

but i was basically referring to bubbl3t3a's claim that a "close friend" has insider information that the exchange rate will be heading towards 2.6 by end of the year.

Disappointment risk: Aussie dollar '27% overvalued'

Australia's dollar, this quarter's best performing major currency, is now the most overvalued.
Purchasing power parity, a measure of the cost of goods relative to other countries, shows the so-called Aussie is 27 per cent too expensive, according to data compiled by Bloomberg. The median estimate of strategists and economists is for it to weaken 6 per cent by year-end, the fourth-worst performance of 31 currencies tracked by Bloomberg...
Read more here
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RBA is most likely gonna increase the overnight cash rate next fortnight.

so...