Exchange Rate Fluctuations

As far as I can remember, electronics have usually been cheaper in USA than over here. At the moment, for example, an 8gb iPod Nano retails at AU$199 in Australia. In the states, it retails for US$149, which converts to AU$218.25 at the current $0.6827 exchange rate - which may have changed drastically by the time you read this. Clearly its only a matter of time before the prices rise here if the exchange rate fails to reach its previous peaks.

What does everybody think about the current exchange rate? Any speculation on whether the first move will be up, or down?

Perhaps more importantly, what other products (or consumer electronics) are relative 'bargains' at the moment, which may be likely to see substantial price rises if our exchange rate stays so low?

Comments

  • Any speculation on whether the first move will be up, or down?

    I have been removing quite a few gambling related sites from OzBargain and… Oops. Just kidding.

    But guessing the movement of the currency is like gambling. With 6% cash rate it is still far better than many other countries so I have no idea why it is still dropping. ozpete's comment here actually helped me understand how the tightened credit market overseas has pushed AUD downwards…

    Very soon we will see any imported products jack up in price (which is basically all the electronics + computer stuff). We'll find the bargains getting more and more expensive in local currency. Another interesting currency to watch out for is Chinese Yuan which has appreciated like crazy in recent months.

    I am actually going overseas soon. Very bad timing :(

    • To me it seems like a lot of the variability in the exchange rate in recent days is due to speculation. Just have a look the massive fall between Friday and Monday:

      http://ichart.finance.yahoo.com/w?s=AUDUSD=X

      Ouch, the Chinese Yuan has appreciated a lot. It was about 6.5 RMB when I was there not too long ago!

  • I've seen computer equipment starting to go up in price.

  • And here I was thinking computer equipment could only go down in price because of technological advancements…XD (Like how the prices for porta hard drives have such large variation nowadays) Ouch.

Login or Join to leave a comment