Australian Dollar Drop Not Good for Australian Travellers

australian dollar dropMany of you may have noticed the major drop in the Australian dollar to the value of the US dollar. Only 2 months ago it was nearly par with the US dollar. Now it is down to around 80 cents, such a bid drop in value in only a couple of months. For all those in Australia having invested in US currency you are probably celebrating right now. Imagine making nearly 20 cents per US dollar you had if you bought it when it was around par with the US dollar…

Who is effected mainly by the Australian dollar drop…?

The major noticeable change is for travelling Australians overseas like me, the currency exchange can be a big pain in the wallet. Also a lot of Australian import investments to USA will notice a rise in there overall costs. To the US however Australia will look like a better investment now for trade. To average people in Australia the value change will not be noticeable…

 Why did the Australian dollar drop in value…?

Apparently it is due to the lowering of rates in Australia. Australia is very reliant of the effects of interest rates and rate changes to there currency.

How far do i think the Australian dollar will fall or level…?

I have not been following the rate changes to closely but i think it will level out around 84 cents similar to the rates before the rise last time to relate to how the rates are now in Australia. If rates rise again in Australia instead of lowering i would predict it to go back up again…

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