Currency movements –
Value comparisons with the australian dollar over the last 3 months
EURO......- 0.75%
JAPAN...- 1.5%
S KOREA + 4.5%
US..............+ 5%
CHINA ...+ 6.5%
Retailers importing goods from china and s korea will have to pay increasingly more - eg. Electrical, clothing , footwear, phones and computers.
Similarly with imported products from America. Japanese cars have become slightly cheaper to import. European goods will become increasingly cheaper to import .
Our exports in $US prices will mean greater profits in Australian dollars.
(The plunge in iron ore and gold spot prices will be partly offset by our lower $A)
Some exporting Australian manufacturers will also benefit.
Likewise Australian companies with income from US will benefit.
Reading the papers there appears to be a concensus that this current move downwards of the $A is likely to be more of a permanent thing ??
So its just a matter of shorting the losers and going long the winners ....
