It’s been a good ride for the Aussie dollar, but its rise has finally been checked by a slowing Chinese economy, the rise of the US currency and its housing market, cooling investor sentiment and low international interest rates. And if it continues to depreciate, the impact on Australian businesses will be a mix of good and bad. In the end, it’s all about purchasing-power parity. When our dollar’s high, we import and when it’s low, we export.
For the consumer this is often felt through rising fuel and imported goods prices, potentially stagnant wages (if not loss of jobs), and less spending power when overseas.
However, for industry, there’s often a mixed outcome.