Monday, May 16, 2011

currency perspective

Just thought I would add this chart for perspective. All we usually hear on the news is whether the currency is up or down v the $US. The trade weighted index basically measures the $AUD against a basket of other currencies weighted on their trade with us. So places like Japan, Korea, and China matter more than the US.

There has been much talk about the impact of the currency on nn-resource trade industries such as manufacturing and tourism. Ricardian Ambivalence suggests that maybe manufacturing is doing OK and in line with long term trends? Analysis of ABS tourism data may shw something similar?

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