The the value of Australian dollar is in upward trend, recording historic highs after historic highs. Many economists are saying that there no end in sight yet for this trend. The recent slump in the US dollar is one of the contributing factors behind this sustained rise in the Aussie dollar, together with huge export to China, which accounts for 25 % of the total Australian exports.

Many Australians are now finding themselves with increased purchasing power as the value of their local currency goes up. With this increased purchasing power, Australians are searching for ways to take advantage of it.

Below is a list of ways we collated to maximize the Australian dollar's strength. Its rise has been on going since last year, and it's high time that you caught up with the trend. As what Dr Martin Parkinson, Australia's new Treasury Secretary, told economists in Sydney recently: "Get used to a high dollar". Clearly, it seems for now that the high Australian dollar is in for the long haul.

1. Invest overseas

With the rise of the Australian dollar, it can be argued that it's good time for Australian to consider investing abroad. Many Australian companies are already taking advantage of the Australian dollar by outsourcing some of their business operations abroad and importing cheaper resources and suppliers overseas.

Australian investors should should bear in mind where their dollars investment are tied up such as if one is to invest in the Japanese Stock Market which is heavily influenced by real estate and foreign debt. They should know the impact the currency rates could have on their business.

It's important to have at least a general knowledge on how currency/forex rates works. You can read about it on our forex section or attend a financial seminar.

Knowledge to Action conducts free forex seminars around Australia and New Zealand, which focus on general financial advice as well as forex trading. You can reserve yourself a seat at one of their seminars in a city near you.

2. Travel abroad

Traveling abroad has become cheaper, thanks to the strength of the Australian dollar. Many Australians are taking advantage of the upward trend by traveling abroad. According to Google Insight, among the top destination, as indicated by searches coming from Australia, are Hongkong, Las Vegas, Hawaii, and New York.

However, a survey last year that traveling abroad is nothing new to the advent of stronger Australian dollar. Roy Morgan Single Source data back in late 2009 indicated that Australians would like to travel overseas. The Australian dollar's rise merely facilitated a dream come true for many Australians!

3. Shop online from overseas

According to Kirstie Clements of VOGUE Australia:"Online shopping plays a pivotal role in the life of modern Australian women and their growing demand for access to both local and international fashion." This is the reason that they recently launched Fashion's Night In which aims "to engage that audience in a celebration of online shopping where vogue.com.au unites a selection of great brands to provide exclusive offers to our audience for one night only."

Clearly, Australians--- both men and women--- with their increased purchasing power, are well in the position to shop online. Without zeroing in to the Australian markets, Sky News reported that many retailers abroad, such as New York's famous stores Bloomingdale's, Macy's and Saks on Fifth Avenue, plans to cater to the international market.

It does help that an online purchase of $1000 is exempted from GST. Online retailers such as Amazon also does not collect sales tax, because of the Constitution. You can learn more about if from Amazon Help Centre.


Do you have any other ideas on how to take advantage of the Australian dollar's strength? It's not going away soon, which is why, to paraphrase Australia's new Treasury Secretary, we might as well deal with it!