Where is the logic in the statement that: "Strong trading nations tend to have strong currencies".
Australia is a strong trading nation primarily because of it's efficient exploitation of it's agricultural and mineral resources.
The manufacturing sector has been better able to get into the act because of the weaker dollar. Maybe your answer would be to reduce our wage costs to parity with those Asian and Middle Eastern countries, that will thereby get even easier access to our markets on the back of a stronger Aussie dollar.
One could hardly refer to the USA as a strong trading nation in terms of exports yet look how strong the USD has been. Perhaps you are suggesting Australia should forget about exporting and concentrate on importing.
The strong USD was in part the result of exporters to the US holding US dollars and parking them in the US.
My reading of the AUD position is that if we want the wages and lifestyle we now have the AUD must reflect that reality.
Incidently the US is starting to pay now for it's high import policies.
That will be a future Australian scenario if imports grow and exports decline through a AUD easily manipulted upwards by our large trading partners to assist their own exports.
The ultimate result then would be a plummetting AUD.
I would suggest that a strong trading nation should aim to be a net exporter and a strong currency (until debt grows to force the currency down) has more to do with net investment in the country which is more likely when the nation is a net importer.
Enlighten us on the logic of your statement. (given you are not into low wages for Aussies.)
