The Chamber of Commerce and Industry Queensland was quick to welcome the temporary decline in the Australian dollar below parity with the US dollar today:
Clearly many Queensland businesses, especially in tourism, are experiencing hard times due to the high exchange rate, but according to the CCIQ the harm may be more widespread:
Alarmingly two in three Queensland businesses are negatively impacted by the continued strength of the Australian dollar and more than half (56 per cent) of businesses have altered their practices as a result.
The overall message from businesses is clear; they are hurting and will continue to do so until our currency drops further.
If there is another interest rate cut this year, I can see the Australian dollar falling to the low nineties, but given the continued demand for our resources, I doubt the dollar will fall back to the pre-resources boom levels of 60-70 cents that our tourism operators and manufacturers desperately would like to see again.