Why the Greenback’s on a Tear
The US Federal Reserve’s ongoing rate hikes and sticky inflation have pushed the USD to two-year highs. Washington’s renewed trade policies — including tariff reviews on China and select Asian exporters — are steering global sourcing back towards markets like Australia.
While that sounds good for our exporters, it also means higher costs for any import that’s priced in USD, from machinery to consumer goods, and new volatility in carrier surcharges pegged to the dollar.
The Flow-On for Local Traders
Exporters are earning more per shipment thanks to the weaker Aussie dollar, but contract pricing’s getting harder to lock down. Importers are the ones feeling the pinch — every rate adjustment or surcharge denominated in USD is squeezing profit margins. Carriers are also recalculating BAF and CAF more frequently, which adds unpredictability to freight budgets.
Steps to Stay Ahead of the Curve
- Re-price smartly: Review USD exposure before quoting customers.
- Hedge the risk: Talk to your bank about forward-exchange cover.
- Watch the fine print: Understand how your carrier applies currency-linked surcharges.
- Keep markets open: Explore new destinations or buyers to balance any US-related slowdown.
Flying Fox Solutions works closely with clients to model freight and currency impacts across different routes. By combining rate visibility with FX insight, we help Aussie exporters and importers keep their costs stable — even when the dollar’s doing somersaults.
Source: Reserve Bank of Australia (RBA) Exchange Rate Data Oct 2025; Reuters Commodities & FX Outlook Report 2025; DFAT US-Australia Trade Update Q3 2025
Disclaimer – Market data is from public sources we consider reliable but has not been independently verified; accuracy is not guaranteed