9/10/2011
As the Eurozone attempted to reach an agreement over their debt crisis the Australian dollar was affected as it rose to nearly 98 US cents, up from 96.56 cents on Thursday. The Australian dollar is influenced by global economic news which makes the dollar rise and fall depending on other currencies around the globe, and the influence that those economies have on Australia's- mostly the European and US economies and markets.
As the dollar had appreciated (then depreciated) against the US dollar in recent times it has pushed up the price of imports as the United States is one of Australia's largest trading partners and they are not as willing to import here as it would cost more for the business and supplier. As the Australian dollar had also risen against other currencies it also would affect trading in their countries, meaning that it would cost less for buyers in Australia, therefore more overseas.
Meanwhile the current depreciation of the Australian dollar against the US dollar has pushed it below parity meaning that Australian products are more profitable for overseas buyers, but overseas products are more expensive for Australian consumers. The rise of the US dollar is now better for investors as it is mainly a stable currency against Australia's, except for the recent GFC which meant that Australia was better off against America which was reflected in the currency exchange rate.
No comments:
Post a Comment