How does the gyrations of the Aussie Dollar affect Shoppers, Travellers, Importers, Exporters, Manufacturers, Tourism operators, Educators?
Strong Australian dollar (above 0.90 USD):
Winners
_Shoppers:_ Imports like electronics and cars should be cheaper in coming months if retailers pass on savings from new stock. Buying online from places like the US and UK will also become cheaper for consumers.
_Travellers:_ Overseas holidays will be less expensive, with more buying power for everything from hotels to shopping. Airlines pay for fuel in US dollars so in theory fares should also be cheaper. Again, this depends on whether airlines pass on savings. _Importers:_ Suppliers offshore will be cheaper to buy from and businesses will either pass the savings onto consumers or increase margins. Companies that use imported capital equipment will also find their costs reduced.
Losers
_Exporters:_ Farmers and winemakers will continue to struggle as their goods become more expensive for overseas buyers. In addition, companies that operate overseas and want to repatriate their profits will also lose out. It should be noted that about 45 per cent of Australian exporters are also importers (see winners above).
_Manufacturers:_ The individual impact will depend on who the manufacturer competes with and where it sells its products. If this includes competition with imports and/or sales overseas then life will become harder.
_Tourism operators:_ Fewer travellers will choose to come here as Australia becomes a relatively expensive destination. This will hurt all aspects of our tourism industry, including tour operators, hotels and souvenir shops.
_Educators:_ Our higher education institutions will suffer as studying in Australia becomes more expensive relative to other Western countries like the US or UK.
Weaker Australian dollar : Of course a lower Aussie Dollar (under 0.90 USD) means you can just switch the Winners and Losers headings around above!
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Further reading on the Australian dollar (AUD) - Guides, Reviews & News from our research team.
Disclaimer: aPlease note any provider recommendations, currency forecasts or any opinions of our authors should not be taken as a reference to buy or sell any financial product.