Bloomberg News Article: Click Here
According to Bloomberg, Australia’s current-account deficit widened in the three months through September as a strengthening currency lowered exports. As Australia’s currency appreciates, Australia’s exports are decreasing. As the exports decreased, Australia’s experiencing a great deficit in current account without any changes to the imports. The appreciation of Australian dollars makes it less attractive to the foreigners buying imports from Australia as the price of import gets expensive. As many of Australia’s industries depends on the exports, this will potentially affect Australia’s economy in short and long term unless the currency depreciates to the original value of Australian dollar.