Is used frequently combined with Ay (see examples).
If a translation has to be given, the most proper would be "gee" or "om my god". There is also an opinion which states that caramba is "the nice way to say" carajo,which is used like the slang shit!.
-Ay Caramba!Those Americans are so fat as my mother.
(apparently the speaker has a fat mother)
-Caramba!Que guapa que estas mamasita!
-Caramba!You're very beautiful mamasita!
Don't believe me? Check out the Wikipedia page for "Minced Oath" and see for yourself. Not that Wikipedia ia always correct, of course, but you make up your own mind. And taking the euphemistic process to even another level, some hispanic people exclaim, "Ay! Chihuahua!" which might seem to be a further abstraction from "penis," but when you think of a chihuahua dog as being long and hairless with wrinkled skin, well...I leave that to you as well.
<<note:It is actually a very handy word when you can't curse in English since everyone will think you're a foul-mouthed bunghole. Instead, use this word and people either MIGHT be impressed with your Spanish or look at you as if you've gone ga-ga & have no fucking idea what you've just said....OR be a subject of ridicule if you're saying this word around a bunch of Spanish-speaking people.>>
<1.>:OH FUCK! Your dad is a gay-ass son of a bitch?!
<2.>: No shit!