The Surge of the $AUD

Lately I've been hearing financial commentators praising the surge of the $AU in comparison to the $US and boasting that parity may soon be reached.

I have to ask, why is this such a great thing?

I'm no financial guru, but in my layman's way of thinking having the $AU on parity with the $US is not such a great thing.

Why?

Well, it's simple; it means the cost of imported goods will drop. That's great for the consumer in all of us, but what this does is 2 things:

1) makes the money spent in this country leave this country;
2) contributes to inflation.

Now, what happens when inflationary pressures start rearing its head? That's right...mortgage interest rates rise.

Having a "stronger" $AU also does something else. It makes Australian exporters more expensive and less competative in the global market. That can't be a good thing for our local business or the national economy as whole, now can it?

Our country literally survives on our exports, from mining, farming, engineering and manufacturing. If all those products become more expensive because of the rise in the $AU there will be less exports, which in turn means less taxes and so it goes.

On the flip side, it does mean that we can travel and have our dollar go farther, but I think that's a rather short-sighted and narrow view.

What do others think?