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Australian Dollar Free Falling - How would that affect the price?

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scotty on 13/08/2008 - 15:57

AUD in USD on Google Finance. It was $0.98.5 a month ago and has dropped more than 10% to around $0.867 right now. Ouch.

Moreover, Nick from Sydney Morning Herald contacted me a week and half ago, interviewing me on whether the rising Aussie dollar has impacted Australian consumers from sourcing products from overseas. Well, I am definitely no expert on this so I went, “yeah yeah many people buy from US or Asia because of high Aussie dollar” then “bang!” this week we have dropped to 6 month low. Not sure whether Nick is still going to write that feature :)

I guess the real question is — is retail price going to go up due to depreciated AUD? AUD dropped to below 50 cents USD back in 2001 and one thing I learnt was — retailers are always slow in adjusting their price when AUD is going up, but are quick to raise price when AUD is going down! Has recent AUD drop bite anyone yet? For OzBargain obviously the hosting cost has increased. Anyone else?

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POWERevolution on 13/08/2008 - 17:02

Ouch, it hurt! Want our $AU go back up to $0.99 or beat US & I’m laughing :)
Right now $0.85 USD if pay via paypal for international purchase. :(

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jaxon on 13/08/2008 - 21:30

“AUD/USD Exchange walks up the stairs but takes the elevator down”

yeah it was agonising watching the exchange slowly approach to AU$1=US$1 and then in a week its down to $0.85 on paypal as said before =(

sorta takes away the incentive to buy international especially after interest rates and fuel prices cut in as well.

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gabbyh on 14/08/2008 - 08:27

Tell me about it. Wanted to make a purchase from a US site but they have had issues for a week which are still not resolved. In that week the AUD has dropped from 95 cents to what it is now. Have just had to sit here and watch the AUD drop while they are unable to get their shopping cart fixed.

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kingwang on 13/10/2008 - 22:12

its 0.67 now

think of the childern!!!

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jennkei on 13/10/2008 - 23:04

Sigh, I can only wish the rate was 0.85!! Who knew we’d sink so low. XD At least it’s higher than yesterday, I guess…who knows what’ll happen tomorrow, though. XD

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ozpete on 17/10/2008 - 07:25

well we know now - 66c

This will hurt we are already seeing local price increases due to dollar drop. Mainly on new products, but once companies $ hedging ends so will the lower prices unless it recovers soon.

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scotty on 26/10/2008 - 19:05

Hi guys! Just got back from overseas, where for half my trip the AUD was traded below 65 cents. Japanese Yen also went skyrocket as investors sell higher-yield AUD to pay for the loan they made in Yen. Definitely not the best time going overseas… :(