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Economics
Australia
Currency Trading
Currency Conversions

Who will be affected by the appreciation of the Australian dollar compared to the USD?

Answer

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Wiki User
September 09, 2007 5:07PM

well this basically means that 1 USD can buy less Aussi dollars.

Both exporters and importers will be affected, the importers will be able to purchase more imports because the value of the aussi dollar has increased, thus imports will increase.

The Americans , realizing that they can't buy as much Australian products as they used to due to the **fall in USD in comparison to the Aussi dollar** will scale back the purchasing of Australian products. Thus exports will fall.