It’s not just your overseas travel which is affected by movement in the Australian dollar.
According to international money transfer provider, WorldFirst, there a 5 things affected by changes in the AUD which may surprise you.
- Petrol prices. A lower Aussie dollar makes it more expensive to drive your car, as the price of petrol – an import – will rise.
- Electronics. Did you know that the cost of imported electronics will rise when our dollar is lower?
- Property. Low interest rates put downward pressure on the dollar, which is good news for mortgagees. But a low Aussie dollar can also push up the price for property as it attracts more overseas buyers.
- Food. When the dollar is high, food imports such as Italian pasta and Swiss chocolate may be cheaper, but when our dollar is low, it’s cheaper to buy Aussie produce.
- Overseas holidays. If the Aussie dollar is weak, overseas accommodation will cost more and you’ll get less bang for your buck when exchanging currency. Tourism to Australia, on the other hand, becomes more attractive to overseas visitors, driving up our economy. It also encourages more Aussies to travel domestically.
Patrick Liddy, Head of Foreign Exchange at WorldFirst, says: “With our dollar continuing to swing against overseas currencies, it’s time for Australians to understand how this impacts them. From the price we pay at the fruit shop, to our overseas hotel room, to our mortgage repayments and the cost of our new TV, a small difference in rates can cause a ripple effect that increases the daily cost of living.”