"why is a lower aussie a problem"It lowers the buying power of...

"why is a lower aussie a problem"

It lowers the buying power of the Australian consumer and since we are a net importer, I.E. running an current account defecit, the majority of our economy is therefore consumer driven. So a lower dollar leads to lower economic activity. This is impart due to retailers having to raise prices to maintain margin on sales. This inturn lowers the buying power of the consumer and thus lower sales.