If the rising Australian dollar’s anything to go by, the best time for Aussies to go overseas is now.
The Australian currency leapt back over 80 US cents on Wednesday for the first time since January, expedited by stronger iron ore prices and weak American economic trends.
This is the first time that a dollar in Australia nearly matches a dollar in the United States since 1983, when the Australian currency was exposed on the foreign exchange market.
For travelers heading overseas, the news could get even better, with speculations that the dollar could reach even 85 US cents.
“It’s quite conceivable we could push up to … around 84 or 85 (US cents) before the downswing resumes again,” AMP Capital Investors chief economist Shane Oliver told AAP.
While this is fantastic news for tourists, exporters would be less thrilled, Dr. Oliver said.
“A climbing dollar would also hit hard farmers, local tourist operators, miners, and higher education providers,” he said. Essentially, all companies with international exposure would be hit hard by this fiscal trend.
According to analysts, a key factor pushing the local currency to rise was data showing US consumer confidence levels falling to an all time low in 2015. They also pointed to higher iron ore prices, which in China have edged close to $60 (US)/ton.