For some time, the Australian dollar has been very strong. It has consistently traded above USD$1.00. However in the recent month, the $AUD has slipped about 6%. If you’re in the market and looking to buy a watch, buy it soon as we’re unlikely to see it above parity again.

Renewed confidence in the US economic recovery and a wind back of their stimulus package has pushed the $AUD below parity. In the past 2 weeks it has fallen about 6 cents. Another reason for the fall is also due to the recent interest rate cuts in Australia. Although the chances of another interest rate cut by the end of the year in Australia are slim, you just never know. The $AUD has peaked, and as things offshore continue to improve, the demand for the $AUD will fall as investors chase better currencies to invest in.

The fall in the $AUD is a welcome relief for our economy. However for the watch aficionados, it is slowly becoming an expensive nightmare. So if you have been eyeing that Rolex Submariner and have procrastinated on that purchase, expect to pay about AUD$700-800 more than last month if you wanted to purchase from the US. If you wait until the $AUD falls to USD$0.90, expect to pay $1400-1500 more than last month.

It will be some time before the Australian retailers adjust their $AUD prices. Although you never know when the authorised dealers will get their pricing updates from the major brands. They’re infamous for surprising their retailer network and customers. Look to buy offshore as prices are still fair at the current exchange rate.

Check out our Marketplace to see some interesting pieces for sale. If you are looking for something in particular or want some buying advice, please don’t hesitate to contact us.