Following on from a smashing employment result in the US, the Australian dollar has now declined sharply against the greenback to sit below 70 US cents.
Cheaper exports, expensive imports...(and inflation?)
Firstly, and perhaps most obviously, the lower dollar can help to increase the value of particularly US dollar denominated exports.
Annual retail turnover growth is presently tracking at well above its half decade average in growing at 4.3 per cent in the year to November. There can be negative implications of a lower dollar for some retailers too, it should be said, such as those which import raw materials.
A fourth trend to watch is whether the lower currency may in time lead to inflationary pressures - both from increased aggregate demand causing demand-pull inflation, and from more expensive imports causing cost push inflation.
Tourism, visitors, and immigration
There is of course no shortage of us wanting to take a jolly jaunt to Hawaii when the purchasing power of each dollar in our pockets is super-strong, but with the Aussie dollar below 70 cents inevitably more of us will choose to holiday at home, which in turn will serve as a boost to the Queensland economy.
In terms of what this might mean for the actual immigration of students measured from December 2014 forth, we could potentially see net immigration of an extra half a million international students into Australia before the decade is out. Lower than previously projected, yes, but still a huge number.