Australia didn't have a choice, as they were never in a recession to begin with. In addition, Australia is an natural resource exporter and a week US dollar helps them.
I think inflation is a more likely scenario than a housing crash. I think we would have already seen a crash if it were inevitable. $1.50 gas is possible if inflation takes hold, but hopefully by that time unemployment will be low enough that we'll be able to weather the storm. I don't think this will happen in the short term, though. A rate hike shouldn't be too much of a shock to to the system. BOC will raise gradually. Of course, I reserve the right to be wrong on all of my opinions above LOL
I think BoC may have to wait for a few US hikes before hiking themselves if the CAD$ continues to rocket towards par again. Housing in Canada will probably be slightly higher/flat in 5-10 years.. might spike then head lower/sideways but overall pretty stable.
But if they are exporting in USD, then they would want a higher USD. Same goes for Canada as they are exporting in USD.
USD strength devalues the commodity which they seek to export. The production and extraction of the commodity is priced in AUD or CAD.
As a Canadian, I find it funny how our dollar is so correlated to commodities, yes we are rich with the stuff, but has anyone actually looked at a GDP to commodities ratio.. its extremely small.. here's the kicker, there is alot of biz that has left and won't come back, the dollar is too high to entice the American firms to return... plus the pro American stance is a kicker... our productivilty rate is still way below the states .. so time will tell.. not calling for hard times a housing crash or any of that jazz....
Some American firms who produce in Canada due to lower dollar will leave for sure, but overall I don't think we'll lose businesses. Our low corporate tax rates is incentive for businesses to incorporate here. Take Tim Hortons for example. A few years ago they when they were acquired by Wendy's, they moved headquarters to the USA. This year they moved back to Canada citing significantly lower taxes. I expect this trend to continue as the USA will inevitably have to raise taxes in the future.