Strong Dollar - How Long Before We Benefit

[Burnsy]

I have been thinking about this since the dollar started to surge afew weeks ago and now I read that Jet prices are increasing, it has got me thinking.

The dollar hit 92 cents US today, how long does it need to stay like this before we see a real difference in machinery and power tool prices? I am not an economists and have no real knowledge about it all but I thought that after a few weeks we would have seen a drop in fuel prices but I have not seen it. Does this mean that we will probably never see the benefit and big business will just take the cream?

[BobL]

I have been thinking about this since the dollar started to surge afew weeks ago and now I read that Jet prices are increasing, it has got me thinking.

The dollar hit 92 cents US today, how long does it need to stay like this before we see a real difference in machinery and power tool prices? I am not an economists and have no real knowledge about it all but I thought that after a few weeks we would have seen a drop in fuel prices but I have not seen it. Does this mean that we will probably never see the benefit and big business will just take the cream?

Price to purchase machine might go down - BUT there'll always find a reason not to bring the price down, besides, freight goes up, rent goes up, Insurance & wages go up, everything else goes up - compared to price drop on machine. Hell - it won't matter what I say prices will never come down!

[Waldo]

My FIL made the comment the other day and I have to agree that he is right.

While we should see prices for imports come down, in this case machinery/tools, the price of a barrel of crude is going up due to demand for the US Winter and conflict in Iraq with the Kurds and Turks which is affecting oil supply from northern Iraq. Given the price of crude going up, we will rightly or wrongly see prices change little as exporters to Australia will claim that the cost of transport has kept prices at levels prior to the strength of the Aussie dollar to the U.S.

We may see some reduction in price but I wouldn't expect too much too early.

But go the Aussie dollar as it helps the justification to SWMBO why I'm buying a few things at the moment from across the Pacific and other places. For the shed and for the business. :2tsup:

[wheelinround]

The other way of looking at it is US wont be buying Australian as much due to our cheaper prices.

[Barry_White]

The other way of looking at it is US wont be buying Australian as much due to our cheaper prices.

I would be interested to know what the US buys from Australia apart from all our successful Companies anyway.


I think the only way to defeat some of our greedy suppliers is to buy direct apart from electrical items.

[munruben]

I heard on television yesterday that Australia's top trading partner is now China and not japan.

[Ron Dunn]

Q: How long before we benefit?
A: When the moon turns blue, pigs fly, and the Easter Bunny takes up turning.

Everyone has learned from the petrol companies ... push prices up on every whim, look for every excuse to avoid pulling them back.

[Burnsy]

Everyone has learned from the petrol companies ... push prices up on every whim, look for every excuse to avoid pulling them back.
This i an interesting one and although it is a different topic it is also something that has been perplexing me. I have been buying LPG for my car for the past three weeks for 37.9minus the 4 cent cole discountfrom two stations in Mt Lawley,this is great. What bothers me is that the Caltex that is within two km of these stations and within eysight of another that was selling for 39.9 was still selling at 63.9:oo:

We have the fuelwatch system over here that is meant to keep them honest but it definitley appears that the is still being taken.

[Solutions Aust]

I have been thinking about this since the dollar started to surge afew weeks ago and now I read that Jet prices are increasing, it has got me thinking.

The dollar hit 92 cents US today, how long does it need to stay like this before we see a real difference in machinery and power tool prices? I am not an economists and have no real knowledge about it all but I thought that after a few weeks we would have seen a drop in fuel prices but I have not seen it. Does this mean that we will probably never see the benefit and big business will just take the cream?

Yes we do not often see prices come down and there are many reasons for that but in this instance we have lowered our Bandsaw and Woodlathe prices and are prepared to assist customers where we can while it stays so good. :)

Woodfast Aust
www.woodfast.com.au

[Ross]

Q: How long before we benefit?
A: When the moon turns blue, pigs fly, and the Easter Bunny takes up turning.

.

2 out of 3 ain't bad.

Ross

[AlexS]

Compare the prices of a TSC 10HB now to that three or four years ago. Quite a bit cheaper now.

[wheelinround]

I would be interested to know what the US buys from Australia apart from all our successful Companies anyway.


I think the only way to defeat some of our greedy suppliers is to buy direct apart from electrical items.


US would be buying up big on the Ozzie $ a good bet right now by $10 Ozzie dollars now and when it drops and US goes back up its worth $15 or $20.

[malb]

The Australian $ is doing well againt the US $ because the US $ is falling relative to other currencies. AU $ has not risen 50% relative to euro or other currencies, but has risen slightly.

Foreign exporters often like to be paid in US$ as they see it as a stable reference currency, but when a foreign exporter does this, they determine a sell price in their local currency, convert to US$ and quote in US$, with an agreed payment time frame, and adjustments factored in if the deal is not closed within the agreed time.

If the US$ continues to sink slowly, the suppliers who prefer payment in US$ will opt for a more stable currency as their trading unit.

With the current situation, you could expect items that are substantially US materials and labour to be cheaper, after current stocks are exhausted, and anything prepurchased and prepaid has been sold at prices relating to exchange rates prevailing when the orders were placed and paid for.

In other words, don't hold your breath.