Shoppers can expect Christmas discount 'bonanza'

Australian shoppers can expect to reap huge discounts on the high street in the run-up to Christmas, analysts are predicting.

Commsec economist Savanth Sebastian noted that the strengthening Australian dollar will allow retailers to offer more discounts to the country's cautious consumers.

"The retailers usually reap the benefits of a high Aussie dollar, but given consumers have held on to a conservative attitude, retailers will pass on those savings," he told the Daily Telegraph.

"It is clear there is serious discounting going on. It's only going to get better for consumers."

The comments may encourage more shoppers to compare debit cards ahead of the Christmas frenzy. According to the newspaper, many economists now expect the Australian dollar to achieve parity with its powerful US equivalent next year, with the Commonwealth Bank expecting this to happen in the first three months of 2011.

The news comes after the Aussie dollar last week rose to a two-year high of US95.9c.

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