The aussie dollar.

[Davidf61]

Well, it's been a bit of a ride for the last couple of years, but the dollar is back down where historically it normally lives, or at least around that area.

Now I try very hard to shop local, but still occasionally buy from o'seas, [usually US] sometimes necessity, sometimes rage! Just wondering what peoples thoughts
are now, are you still going to shop from faraway places, or shop here more, or maybe shop less? Any retailers care to comment?

From around $1.05 to todays $.91 or so, it make a big difference when looking at the price of some stuff......

[FatCanyoner]

David, US$0.91 is still historically quite high for the Aussie. There seems to be plenty of reason to believe the slide will continue, down to somewhere between 75 and 85 US cents over the next year or so. Our next rate change is likely to be a drop, which will see the dollar slide again, and our commodity sector is coming off the boil. Plus the US dollar is strengthening. After all, our strong dollar was more about theirs being historically extremely weak. I think over the next few years we're all going to have to change our buying habits a bit.
Personally, I think the positive is that it will now be economical for local companies to stock a lot of products that currently aren't viable. It could be a good thing, not only for traditional outdoor stores, but for local online stores. Of course most of us will just cop the higher price for anything that has to come from overseas, but it may lead to a little less spontaneous gear purchasing!

[roysta]

David, US$0.91 is still historically quite high for the Aussie. There seems to be plenty of reason to believe the slide will continue, down to somewhere between 75 and 85 US cents over the next year or so. Of course most of us will just cop the higher price for anything that has to come from overseas, but it may lead to a little less spontaneous gear purchasing!

Absolutely agree here. I'll be happy to be less spontaneous, but it won't stop me buying because few stores here will be competitive.
Actually I'm more concerned about a closing kiwi dollar that a USD, mainly because I get better deals out of websites like Bivouac.

[ULWalkingPhil]

I just made a couple purchases tonight from the US. Conversion rate was 87 cents. Was holding off on the purchase, hoping that the dollar will regain strength. Looks like it will weaken rather than strengthen, so I jumped in and purchased tonight. What I purchased is not available in Australia.

[wayno]

dont know so much about Aus but i purchase a lot of stuff overseas because its not available in nz and often not in aus either..
the brand might be available down under but often the item i want isnt, sometimes the shipping is cheaper from the states..

[photohiker]

Any advantage buying locally when the dollar drops is short lived.

Once the local importers re-stock, the prices will go up and the overseas prices will be cheaper again. Some jack up the prices on existing inventory to reflect the new exchange rate and get a nice profit boost.

Price differences between local and overseas are often way more than the recent change in the exchange rate. If the difference was only 10-15% and the item was available locally, I'd buy it locally anyway. When the difference is 50%+ (and it often is) I'd only buy locally if I really had to.

[wayno]

i was looking at electronics the other day. the price difference wasnt that great between overseas and down under... unlike the outdoor clothing and gear market, bring on parallel importing for the outdoor industry

[Joomy]

Luckily I paid for my quilt a month ago. Not so luckily I still want to buy a Tarptent.

[JOCKs]

With the price hike on shipping costs its more attractive to buy locally, unless its not available locally.

[roysta]

It'll remain cost effective (and better) to buy from the USA until our dollar reaches about 60 or 70 cents.
So keep buying.

[photohiker]

With the price hike on shipping costs its more attractive to buy locally, unless its not available locally.

What price hike?