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There is a lack of alignment between Australia's economy and the views of dealers who assess the Australian dollar. This situation may have benefited Australia during the Asian crisis, but could also have a negative impact. Issues concerning the marketing of the Australian dollar are discussed.

All Australia's main markets reveals signs of recovery or growth and 2004 will produce plenty of stock winners despite higher interest rates and a stronger Australian dollar. However, investors should be cautious about chasing booms, a case in point is how quickly the US market has forgotten about the 2000 tech wreck, and a strong sense of discipline is required as well as knowledge of stock values.

The appreciation of the Australian dollar will make it more difficult for Australian companies to generate a profit from their exports to the United States. Analysts believe that exporters will begin to suffer as the Australian dollar moves above a value of $0.60 in United States currency. Analyses of the effects of the rising Australian dollar and exporters' strategies for dealing with the trend are discussed. Forecasts for Australian exports and are also presented.

The impact of a global recession on the Australian economy is discussed. The slowdown in US, European and Japanese economies is assessed and factors which may assist Australian recovery, such as the weak Australian dollar, are examined.

Base metal producers are not expected to experience the worst possible outcome of the Asian economic crisis because the Australian dollar has a lower value against the US dollar. Base metal prices have fallen an average of 17% which will force producers to try to maintain sales volumes when Asian countries are decreasing demand. Some Asian countries may not be able to pay for the previous metal shipments.

The strengthening of the dollar has an impact in the bottom lines of many companies they were expected to hike their dividend payouts. This has a negative impact on companies with a high export content while companies with large domestic exposure will post healthy figures.

The terrible combination of the Iraq war and the rising Australian dollar has affected the tourist industry in Australia, but tourism stocks are finally attracting investors. A recovery is already in process as fund managers snap up undervalued tourism stocks, however, it is observed that even recent gains can only take some tourism and leisure stocks to a shadow of their former market capitalizations.

In 2004 the increasing Australian dollar has put some big-ticket resource projects under threat, example when the exchange rate raised from US52 cents to US65 cents during the feasibility study of one Resource Company, which was forced to mothball proposed $100-million platinum mine in Western Australia. The platinum price shot up from $US580 (an ounce) to $US860 causing a currency crush.

The Australian dollar is rising against the American dollar but not against other currencies. Currency buyers appear to be focusing on interest rate yields instead of economic growth, and Australia is being largely ignored.

The value of the Australian dollar has fluctuated significantly since 1999. A rise in the value of the dollar to between $0.50 and $0.52 would be most beneficial for the economy in 2002. Most economists forecast a level of $0.45 to $0.55 by Jan 2002.

Issues are presented concerning the depreciation of the Australian dollar in 2000 to a low of US $48.87. The impact of the fall in the Australian dollar on economists, importers and exporters is discussed.

A discussion on the possibility of a slowdown in the US economy, which has been very buoyant, causing a fall in the value of the US dollar is presented. If the US dollar was to decline in value it is likely to have a positive effect on the value of the Australian dollar.

The effects of the Australian budget of 9 May 2000 are analyzed. The government has produced a budget surplus but there is pressure on the Reserve Bank to raise interest rates up to 7 per cent, it is claimed.

The Australian stockmarket is associated with the wine industry subjected to be a sicker sector. After widespread takeover activity, a global grape glut, gross mismanagement, there are just seven producers left. Australians are watching the rising dollar erode their export markets, a struggle is on with a 28% increase in local grape production, but the pressure is lifting in the export market especially with Southcorp.

With a sharp fall in the value of the United States Australia might be faced with a higher Australian dollar at a time when the world economy is ailing. However, the fall in the value of US dollar is considered as the best way to correct America's excessive current account deficit.

The Australian native title market is booming due to the low valuation of the Australian dollar. As investment in Australian business has grown, the need for native title deals has also increased.

Both the euro and the Australian dollar have been rising steadily against the U.S. dollar, thus showing that the euro is not a failure. However, some economists believe that the euro is appreciating not because investors are confident in the euro-zone economy but because they are worried about the U.S. economy.

The predictions of economic forecasters on the future of the Australian economy are discussed. The end of the high level of exports, the weakness of the Australian dollar and a low level of economic growth in 2001-2002 are examined.

The value of the Australian dollar is affected by the anticipation of cyclical price moves of Australian commodities. In 1998, when the dollar fell to a low of US55.3 cents, the dollar moved up or down with commodity prices. In 1999, the foreign exchange market was optimistic about a rise in commodity prices, and the dollar recovered more than did commodities to US65-66 cents.