<blockquote rel="stolich18">Ang sabi ng mga nakakausap ko here, not good for the Australian economy pag masyadong mataas ang value ng AUD. For one daw, nagiging conservative mga companies at hindi sila tuloy masyadong naghhire dahil wala nababawasan na margins nila sa sobrang mahal ng sweldo. hehehe di ko rin masyadong gets pero un ang sinabi skn. </blockquote>
It is like this... Export driven ang economy sa Australia mainly sa mining; as some of us know, these minerals are priced in USD; when the value of the AUD was high, this would translate to lower income for these exporting companies WHEN THEIR USD IS CONVERTED to AUD...
Right now, it is the other way around... Since bumagsak substantially ang AUD against USD, this would mean a stronger profit for these companies if you convert their income back to AUD.
Having said this, a weaker dollar may also have some other cons like it would be more expensive to travel, gasoline might become more expensive and stuffs from abroad may be more expensive as well...
To put it this way, double edge sword ang topic ng currency appreciation/depreciation... 🙂