After riding high since the global financial crisis, the Australian dollar could be staring at a swift decline and consumers could be the big losers.

The US to Australian dollar exchange rate has been high by historical standards, having risen from a low of 62 cents in October 2008, as the US financial system imploded, to record highs in 2011 of $US1.115. It has since eased back to around 93 US cents.

But with the Reserve Bank of Australia expected to keep rates on hold at historic lows at Tuesday’s meeting, experts are saying that the forces which could weaken the Aussie dollar are beginning to gain momentum.

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As reported by ABC News, a survey of 50 analysts by Bloomberg in July found expectations that the dollar would fall to 90 US cents by year’s end, drastically reducing the buying power of online shoppers and overseas travellers.

Westpac’s Senior International Economist Huw McKay agrees.

“We think the Australian dollar is going to lose a little bit of ground going into the end of the year, bottoming out around 90 cents before it starts to move higher again in 2015,” Mr McKay told The New Daily.

“We certainly don’t see any major downside risk, and that’s why we’re calling 90 [cents] flat, rather than something into the high 80s,” he said.

Dr Shane Oliver, Chief Economist at AMP Capital, foresees a slower decline, but a longer and more drastic decline.

“I’m not too confident about the short term. There is a risk it could go up a little bit higher in the months ahead. But by year end, we see it falling to 86 cents, and in a couple of years time down to 80 cents,” Dr Oliver told The New Daily.

• Click on the owl for more on why the dollar is expected to fall  

What does this mean for you?

Tom Godfrey, head of media at consumer advocate CHOICE, told The New Daily that consumers need to be wary when shopping for large purchases after a dive in the dollar. This is because some retailers hike prices on existing stock on the “dodgy” excuse of higher import costs.

“If you are in the market for a significant purchase like an appliance, then just be mindful of the fact that speculation on the dollar shouldn’t move prices, particularly when these goods have been sitting around for a very long time,” Mr Godfrey said.

Shop online now sooner rather than later

A drop in the exchange rate is bad news for online shoppers. Buying now and not later could save you money, Mr Godfrey said.

“If you think the dollar’s going to fall, if you believe the speculation, then obviously now would be a good time to purchase from international websites,” he said.

“Going forward, buying from local retailers may well get you a better deal.”

Jump on a plane

Likewise, your dollar will go further if you head overseas while the dollar is still relatively high. Local travel could become a lot cheaper than flying overseas, Mr Godfrey said.

“Obviously, if your buying power is less when you’re travelling overseas because the Australian dollar is valued less, then international travel may well be less appealing.”

Shop around

As always, shop around and compare prices, no matter what the position of the dollar.

“Even though you might get a slight decline in your buying power, there still will be great deals through international websites, so make sure you compare local and international. That way you’ll end up with the best deal on any given day,” Mr Godfrey said.