Australian Dollars on the Rise - and what it means for You
Over the last several months, Australian dollars have been on a surge against the euro and US dollar, and they only appear to be increasing in value.
Australian dollars are the highest theyíve been since exchange controls were ended in 1983. Economists are predicting that the currency will continue to rise and may even overtake the US dollar as soon as early 2011.
Reasons For The Rise
There are a couple of key reasons why Australian dollars have seen this sudden surge. Because of itís close ties to neighbouring Asian economies, the Australian economy benefits from their growth.
As Asian economies expand, we can expect to see a continued increase in the value of the AUD.
This is especially true of the Chinese economy, which is growing in leaps and bounds - particularly its consumer sector, with China's burgeoning middle-class expected to soon outnumber the entire population of the US.
Australia is a great economy for foreign investors because of its low market volatility. Its economy has grown steadily for almost 20 years and it is considered one of the top developed countries in terms of slow and steady growth. In the Asia-Pacific region, Australia is first for labor conditions, agricultural production, industry and standard of living.
What All Of This Growth Means For You
Although a currency that rises quickly to become very valuable can have some negative consequences, the steady rise of Australian dollars presents a good deal for most. It means that Australians have more buying power, and there are several advantages to this. First of all, it makes overseas travel cheaper. Over the period that the AUD has been soaring, there has been a huge increase in the number of Australians traveling abroad. Plane ticket costs, hotels and all other travel expenses are now lower than before.
What will the Australian economy do in the coming months? Itís often hard to say, but the trend of slow and steady growth in Australia indicates that Australian dollars will continue to rise against other currencies. The continued expansion of the Chinese economy will also keep this trend going. Now is a great time to take advantage of it.For more information on the Australian currency, see Australian-Dollars.com/history.htm
Learn about the introduction of
Australia's decimal currency system
Explore the economic factors that are
driving the Australian currency
Reasons behind the dollar's rising value
and what it means for you
See the various coins and notes that are
currently in circulation within Australia