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Through increased purchasing power consumers can choose from a larger variety of goods offered by the global market, increasing industry competitiveness. The trade weighted index (Australia’s currency compared to Australia’s main trading partners’ currencies) has increased towards 70 for the first time since the mid 1980’s. This is a key figure for an economies exchange rate as it calculates the currency against the main trading partners which actually affect the exporting and importing rate and because it removes the volatility found on individual exchange rate quotations. Interest servicing costs have decreased over the years which should mean a reduction in the CAD...
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