Rob Coyte's Blog
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Whether the strong Aussie dollar is good or bad depends on what side of the fence you sit on.
If you are planning to go overseas no doubt you are overjoyed with the exchange of your Aussie for the Greenback or Euro.
The same cannot be said for our overseas visitors. Visa recently reported that total spending in Australia by UK visitors was down 3% and down 8% for our US visitors. Interestingly, the total money spent by Chinese visitor had increased by 2%.
As far as investments go those companies that need to buy things from overseas are better off whilst those that have things bought from overseas customers are worse off. Markets react to such movements and these are exactly the sorts of things that are built into the share price of companies. This provides an opportunity for those that are willing to take a longer term outlook on these businesses rather than just react to short term foreign exchange movements.
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