If you have recently been to Australia, as I have, you may well have noticed how poor the AUD is against GBP at the moment. Historically, and having worked in the forex market for many years, I can always remember that the AUD was well over 2.00 to every pound. Nowadays, however, you may be lucky to get a rate that is even equivalent to the USD.
Throughout 2010 the Australian Dollar continued to fall lower and lower against the pound. This was in response to the fact that the Australian economy has never actually been a recession lately: their economy is linked very closely with China and this is the country that seems to influence the way in which the Aussie economy will trend.
Just a few years ago, Australia was considered to be a relatively reasonable country. Today, however, this is far from being the case. This atrocious rate means that when any Brit reaches Australia, they will instantly notice how expensive everything is - indeed, this was exactly what I found when I was there at the beginning of this year.
This is especially the case for things like hotel accommodation and eating out. I found alcohol extremely expensive and you can expect to pay silly rates for a simple bottle of wine in a restaurant.
Australia realise that their dollar cannot continue in the same way indefinitely. They realise that their overall economy is going to suffer in the long run. In the meantime, whilst the AUD is at its current rate, only book holidays there if you can definitely afford it - as it will be one of the most expensive holidays you have ever had!
