Rising Aussie dollar hitting service industry

Financial and commodity markets analytics

The recent strength of the Australian dollar is threatening to pressure specific sectors of the economy as the country overcomes the finish of the mining boom.

The currency has jumped over 10% since hitting a low of around US 68c on the back of positive local data but also in part to US dollar weakness.

University of New South Wales international executive director Laurie Pearcey noted that although the Aussie dollar had risen above US75c it had not affected the overall university intake,

"International education is a big investment and, while currency will always play a role, it is one of many factors feeding into a complex decision making process that will inform one of the single most important investment decisions made by international students and their families," Mr Pearcey said..

Adding that while it was vital to compare the Australian dollar to the level of the American dollar, Mr Pearcey also noted that it was important to take into consideration the countries from where a majority of the international students come from,

"Currency issues also play out differently across feeder countries. We instinctively look at the value of the Aussie dollar against the greenback, but we also need to look at other factors such as the relative value of key source country currencies such as the Chinese yuan and the Indian rupee and how these play out against our overall competitiveness."


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