Australian Dollar decrease is mostly good news

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Australian Dollar decrease is mostly good news

The decrease in the Australian dollar has been welcomed as it sits below parity and many companies across numerous sectors are already calculating what it could be worth to them.

The manufacturing industry, farmers and the tourism industry are frequently named as a victim of a high currency and domestic steel makers such as BlueScope and Arrium have had to cut operations and lay off staff during the recent surge in the dollar, but now they could enjoy some relief as it gets to US96¢.

Arrium estimated recently that every one-cent movement in the Australian dollar is directly worth - on an annual basis - up to $12 million in earnings before interest and tax.  Given it has lost 6¢ over the couple of weeks, Arrium could have an extra $70 million or so to play with if it stays at this level for the next 12 months.

The manufacturing industry, farmers and the tourism industry are all looking up with the decrease and the low dollar has also been beneficial to the property industry as off shore buyers snap up an array of properties with the Chinese demand seeming endless as they flood the residential unit and housing sectors, as well as the rural and commercial markets.