1. A rise in the Aussie dollar makes imports cheaper (an imported item priced in, say, US dollars, will now cost fewer Australian dollars).
2. It will also make life tougher for our export industries (because the foreign currency they earn from their overseas sales will now buy fewer Aussie dollars)."
I understand the 2nd statement. However, I don't get the first statement because why are we pricing import items in US$? (We said in the 2nd statement that exporters earn foreign currency from oversees sales...so that Americans exports to Australia should be earning A$ for those American exporters).
So if an American exporter is selling some items for $AUD10K in Australia, if the Aussie dollar appreciates, then when the American converts his Aussie currency he earned back to US$, he will have more US$. So it's good for American exporters, but how is it good for importers and Australian consumers of imports?