Looks like the Aussie dollar is on its way down to parity with the US - it dropped almost 2c overnight.
http://www.news.com.au/business/australian-dollar/dollar-tum…
Some say it's being deliberately manipulated:
http://www.forbes.com/sites/timtreadgold/2013/05/08/george-s…
Some say our currency is overvalued and it has been a long time coming.
But whatever it is, it's not good news for us bargain hunters that often buy from overseas.
This is actual a good news for local industry, which is the source of $$ for most ozbers I reckon.
Well it will make imports more expensive so locally produced stuff will be more competitive.
Consider the recent TM Lewin shirting deal (shirts at $36 with free AU delivery). Myer had a sale on at the same time with selected shirts around $60 (standard retail is $90+). The AUD would have to drop to US$0.60 for the sales to be equivalent.
Also, local prices for a lot of goods (specifically those that can be easily exported) tend to increase when the dollar falls, as they become competitive in overseas markets, and demand increases accordingly.
It's better for our local economy. Think services like education, which is a pretty big export, our universities wouldn't have a lot of business from international students with Aussie dollar being overvalued.
Everything is still going to be cheaper overseas.
i remember the days when it in the 60s
i'm guessing it has to do with the drop in the australian cash rate
It might bounce back a little then as our cash rate still exceeds most developed nations.
so this means the paypal exchange rate will be AUS$1 = US$.94?
yeah paypal is a rip
Attach a 28 degree Mastercard to your account and have your purchases charged in local currency. That way you get the exact Forex exchange rate at the time of purchase.
Or the Citibank Plus bank account's Visa card gives you the same thing!
I'm old enough to remember when it was (painfully) 47 cents to the U.S. dollar. I'm also old enough (albeit only just) to remember - pre Keating currency float - contemplating buying a miniature spy camera from the back of a comic when our dollar was worth $1.33
I am old enough to remember this too, although I never tried to buy a miniature spy camera. I was travelling at the time and the $AUD was buying 71c Fijian! Talk about a banana republic.
Bula!
Not as miniature as Corbett, I trust…
ah, i remember seeing all those advertisements on the back of comics when i was a kid for toy soliders and x-ray glasses from some dodgy place in the usa.
God, and don't forget the 'Sea Monkeys'…
I never did get the camera, but the bloody 'Sea Monkeys' arrived.
For anyone too young to know… trust me, you didn't miss anything.
arrgggh, how could i have forgot those
and when kids had RESPECT for their elders, goddam it. now it's all iphone, justin beiber and the internet….
This devaluation will give the oil companies another lame reason to increase its petrol prices.
Each time the AUD$ goes down , the petrol prices go up .
AUDUSD actually dropped below parity for a short time today. It's going to be good for the export business, but most ozbargainers, ie net importers, will lose out.
As of 1AUD buys 47c USD I thought it's only 12-13 years ago? I was traveling to Singapore that year (2001) for work and AUD bought less Singaporean dollar.
You may be right Scotty. 47c was the nadir. It did take a little while for it to really kick in, but the downward trend after the float soon became concerted. Perilous and horrid for importers and travellers alike.
First world problem. Lots of unemployed in Europe and the US.
I certainly wouldn't want to be looking fo a job in Spain at the moment. More than 25% unemployment. Still a first world country - for the time being anyway.
Aww some people with roofs over their heads, food in their belly and access to the Internet are upset that I might suggest that they are still luckier than people in other countries struggling to feed families, avoid being evicted, etc.
Fell below parity for little while early today
Is it worth grabbing something like the AMEX GlobalTravel Card to lock in a good rate before it goes lower? I only mention the AMEX GlobalTravel Card because it doesn't have any fees via Australia Post (except ATM) and the funds never expire.
usually all those travel cards offer pretty poor exchange rates
About 3% lower than the interbank rate, about the same as most credit/debit cards.
If today's 'Inside Business' isn't already up on the ABC website, it should be soon. You'll need to watch the whole half hour, but it's certainly worth a look.
I am just thanking God that we did our US trip a month ago when it was mostly $1.03-$1.05 rather than now…
Still, even at parity lots of bargains to be had overseas - just not quite as good as before.
And, like others have said, it will help our exporters a bit.
Can I ask which currency exchange you used and travel card?
Makes those modern soothsayers ("economists") who forecast parity and above well into next year look a bit ordinary.
I remember the AU dollar being a lot lower many years ago so I still treat anything above 80c as a bonus :)