If you think the Australian dollar’s fall in the past few weeks to this morning’s level around $US1.03 is going to give a little help for our exporters, you are mistaken. To be sure, the Australian dollar is down around 3 cents from levels above $US1.06 in January, but the bulk of this decline has been against a rebounding US dollar and offset by the free-fall of the Japanese yen.
On a trade weighted basis, the Australian is stronger now at 77.5 points, than on December 31, 2012. It is higher now than in the middle of last year and it is just 2 per cent shy of hitting a 27-year high. So much for the depreciation.