Although edging sideways for most of the last few months, the large and seemingly sustained depreciation of the Australian Dollar in 2014 and 2015 is commencing to impact upon Australia’s patterns of international trade, especially imports. Imports from the USA are under most pressure, followed by those from Japan, while those from the Eurozone are comparatively in a stronger position.
The chart below shows the Australian Dollar’s experience against each of the Euro, the Yen and the US Dollar.
To go straight to the dashboard and take a closer look at the data, click here.
For the full 2015 calendar year, the Aussie decline 10.9% against the US Dollar, adding to the 8.3% depreciation of the year before. However, the Aussie declined just 0.9% against the Euro in 2015 and appreciated modestly against it, the year prior.
The 10.3% depreciation against the Yen in 2015 came after three years in which the Australian Dollar had risen and then sustained its level, due largely to weakness in the Japanese economy.
Little wonder with these currency movements that imports from countries transacting in Euros are out-stripping those from the USA and Japan.
