A year ago, the forces acting on
the Australian dollar exchange rate were all working in the direction of pushing it up.
The behaviour of
the Australian dollar exchange rate is one example; since it was floated in the early 1980s, the path it has followed has been very similar to that of world commodity prices (Graph 2).
Not exact matches
The RBA study pays special attention to the
exchange rate appreciation, noting that the stronger
Australian dollar had the effect of moderating the effects of resource price increases: higher
exchange rates make all exports — including resource exports — less competitive on world markets.
As the
exchange rate appreciated through to late November, speculative positioning in Australian dollar futures on the Chicago Futures Exchange rose to record
exchange rate appreciated through to late November, speculative positioning in
Australian dollar futures on the Chicago Futures
Exchange rose to record
Exchange rose to record levels.
Recent weakness in the
Australian dollar may have reflected the fact that the market had become over-extended as the
exchange rate had risen for six months in a row, with a cumulative rise of 25 per cent.
Talk of US monetary tightening over the past month prompted a rise in market interest
rates in Australia, particularly for longer - term securities, and a fall in the
exchange rate of the
Australian dollar.
This was initially spurred by a sharp lift in
Australian dollar commodity prices and mining profits, buoyed in part by a large depreciation in the
exchange rate.
Despite the
exchange rate appreciation, prices in
Australian dollar terms have also increased significantly over the year to be well above the average level of the past decade.
During his tenure in the PNC Economics Division, the team has been recognized as the most accurate forecasters of the US economy (Consensus Economics, 2017), the euro to US
dollar exchange rate (Bloomberg, fourth quarter of 2016), and the
Australian dollar to US
dollar exchange rate (Bloomberg, first quarter of 2017).
The
exchange rate of the
Australian dollar rose strongly through the first half of 2003.
Exchange rate changes between the
Australian dollar and US
dollar have broadly offset this gap.
The more general forces that have influenced the
exchange rate over the past year or so have been the relative strength of the
Australian economy, the associated yield differential in favour of
Australian dollar assets, and the continued improvement in Australia's terms of trade, which are now at their highest level in more than 25 years.
It, and the foreign currency debt servicing payments, are therefore subject to valuation effects when the
exchange rate changes; currency depreciation increases the debt - servicing costs in
Australian dollar terms.
One offset to this brighter outlook, though, is the appreciation of the
exchange rate, which reduces the
Australian dollar proceeds of foreign - currency export receipts.
Assuming that investors did not hedge their
exchange rate risk, the
Australian dollar value of their US investments can be calculated by converting the US accumulation index into
Australian dollars at the prevailing
exchange rate.
The turning point in the market came with the intervention by the US Federal Reserve to support the yen
exchange rate; this caused a sharp rise in the yen and the
Australian dollar moved up with it.
With the narrower trading range for the
Australian dollar during 2005,
exchange rate volatility has fallen below its post-float average.
The
exchange rate of the
Australian dollar has moved to a flatter trend after the increase over late 1995 / early 1996.
But in October, Catalina cut off cash to the survey due to growing costs, caused partly by changes in the
exchange rate between the
Australian and US
dollars.
Now, a new report coming from Motoring in Australia suggests that Kia's upcoming rear - drive sports sedan will be priced at $ 40,000
Australian, which converts roughly to $ 29,500 U.S.
dollars at today's
exchange rates.
Points awarded will be based on the currency spent and the equivalent in
Australian dollars and may fluctuate due to currency
exchange rates.
For transfers and activities booked in a currency other than
Australian dollars or in locations where the local currency is not
Australian dollars, the
Australian dollar equivalent amount will be calculated using an
exchange rate on the day the booking was made, as determined by Viator who administers bookings for transfers and activities on qantas.com.
For parking booked in a currency other than
Australian dollars or in locations where the local currency is not
Australian dollars, the
Australian dollar equivalent amount will be calculated using an
exchange rate on the day the booking was made.
While 1.6 billion
Australian dollars (just over 1.2 billion US
dollars @ today's
exchange rates) may seem like a lot of research money for a country that doesn't have the necessity of maintaining fleets of satellites or ocean - going research buoys, but it is a very sharp reduction from the AU$ 3 billion they were allotted for the current year.
ECONOMIC OVERVIEW Currency:
Australian Dollar ($ A) Market
Exchange Rate (5/24/02): US $ 1 = $ A1.79 Nominal Gross Domestic (GDP, 2001E): U.S. $ 365.8 billion Real GDP Growth
Rate (2001E): 4.1 % (2002F): 3.8 % Inflation
Rate (2001E): 4.3 % (2002F): 3.0 % Unemployment
Rate (2001E): 6.9 % (2002F): 7.0 % Current Account Balance (2001E): - $ 15.3 billion (2002F): - $ 16.9 billion Major Trading Partners: Japan, other Far East, European Union, United States Major Export Products: crude materials, food and live animals, mineral fuels and lubricants Major Import Products: machinery and transport equipment, manufactured goods, chemicals