Australian dollar August 2007

The Australian dollar (AUD) has a mixed history. Its import weights declined between 1980 and 1995 even as the Australian dollar remained in a long term downtrend. These weights have remained flat over the past decade regardless of currency movements.

However, in one of the few cases where the protectionist model works, export weights to Australia have mirrored the currency’s course since the mid-80s. This is one of the few times when American goods and services became more competitive with a weaker U.S. dollar.