Today's Coming Crisis Movie

Thursday, May 31, 2012

What a soft Aussie dollar means for you

After being perched well above the $US1 mark for the first four months of this year the Aussie dollar has come steadily down. Since the start of May it’s been slashed almost 7% as concerns over Greece’s political stand-off and China’s apparent economic slowing have again spooked investors.

Naturally it’s been getting a lot of press... good for business, bad for online shoppers, great for tourism, terrible for petrol prices... but the trouble is that the broad brush of mainstream media doesn’t usually elaborate on what it all means. Luckily my mates at CommSec have not only been keeping me informed daily on Sunrise but they’ve released a terrific report analysing the full consequences.

So with a little help from CommSec chief economist Craig James, and his team’s findings, here’s a breakdown of the economic implications of a softening Aussie dollar. Read More