AUD to USD is nearing 50c, similar outlook for euro, cad and many other economies. around the same range as what it was during the last GFC. What the hell is wrong is AUD? nobody wants it, nobody trusts it. I find this a disgrace. I'll get paid in USD/EURO/CAD instead.
What the hell is wrong with AUD it is a disgrace
happirt on 27/03/2020 - 14:21
Last edited 27/03/2020 - 14:23
Last edited 27/03/2020 - 14:23
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@RockyRaccoon: Thanks for the responses Rocky, much appreciated. I noticed in 2015 when prices started going up on various tech products(Phones/Computers) from overseas companies and the reason given was that the U.S dollar was stronger against other currencies. For example Apple's 15 inch MacBook Pro increased in price twice in 2015, going from $2,499 to $2,799 in March, then to $3,099 in September. In 2016 when they released a new model it was priced at $3,600, so in sixteen months that particular laptop's price increased by $1,100 because our dollar was sitting in the seventy something cent bracket! But as you said in your post it goes beyond consumer goods to major exports that balance our economy.
If you think the LNP are the better managers of the economy then you've been had.
@twjr: No I don't think they are, that's why I said "supposed to be". I believe both major parties are equally inept at managing the economy and only make decisions based on how it will financially benefit them and their partners directly.
Yeah what disgraceful conduct of the aussie dollar, i mean how do they sleep at night! Do they have no conscious?
We should be copying the Zimbabwean dollar, i mean they increased a million fold
They're the good guys,
well you are wrong straight away
so how could you honestly comprehend the market
What’s driven the recent change? 1 week ago it was 55 cents!
Stimulus packages the world over?
WOT?
61.301 at this very moment 12:00 28th March 2020
??
Cough cough …
59.01 as we speak …
Its pretty easy to understand
1. the AUD is a risk ON investment and currently its all risk OFF
2. The AUD has been held up in the past by high interest rates. And particularly higher than US rates. These are now gone so no incentive for international investors to park or risk thier money here. Its all going to USD.
3. The AUD is a commodity currency so its bouyed by high demand and high prices for commodity prices. This is the only reason it hadnt collapsed already. But now even that has gone.
4. The AUD is supported because of our governments low debt but even that is going out the window.So why would any international investor buy AUD stocks and financial instruments going forward? Australia is heading right into a DEPRESSION.
Its a matter of get OUT quick which is what you have witnessed.Mate, it's good to see you are back to the forum, It's been always a pleasure to read your realistic comments, especially when everyone was enjoying the idea that 'Australian property market can never fall'
Yes many people here dont like to accept "REALISTIC" opinions.
Its a matter of agree or keep silent many times.
Any time you make a comment that runs against the flow you get negative votes.
And moderators slam you in the Penalty box without a valid reason other than someone complained to keep you quiet with no opportunity for an appeal.
Hardly a democratic web site that allows for free speech.I can guess who that "someone" was…
Any thoughts on if the recent 7 day resurgence is based on anything long standing or more of a dead cat bounce?
You forgot to mention the record prices for Iron Ore and Demand on Education. That's keeping the $ much higher than it would otherwise be.
The US has now topped 100,000 infections, and that will grow into the millions in the coming weeks. This will result in huge mortality thanks (in part) to their ineffectual health care. The resulting effect will be an economic collapse and collapse of their dollar. The US markets are just short sighted and reacting to their stimulus measures right now.
Actually you can tell by his comments lately that Trump has opted for the "Herd immunity" method of dealing with this. His approaches are always very practical, like it or not.
The Herd immunity approach allows the virus to spread to as many people as possible as quickly as possible so most of the population develops immunity thus giving the virus nowhere to go. This also prevents a second wave of infection which can be far more deadly. (read up on spanish flu)
However there are many inevitable casulties along the way.
Its a way of cleansing the population of the weakest so only the strongest survive.
Just think of how much the US could save on Social welfare ahd health costs with this approach.
It makes a lot of sense but he cant just come and say it because it is political suicide even though probably the best approach. Would also cause riots and social unrest.
Read more here:
https://www.abc.net.au/news/2020-03-19/what-is-herd-immunity…Yep, but that doesn’t invalidate what I’ve said
The whole point is to slow rate of infection, because your alternative is absolutely blasted hospitals.
When the hospitals are on the brink, it'll destroy people's feelings of security with record deaths, the media will have a field day, the economy will shudder. Don't forget Doctors dying too.
I agree with @Burnertoasty, its not going to be fun times ahead.
Things will be fine before and after the storm to a degree, but without slowing the spread you won't be able to weather the storm due to the collapse of health & healthcare in your immediate environment.
Herd immunity is risky. This covid19 isn’t like chicken pox. Immunity is short lived in those who recovered. Many may catch the bug again.
I think it's better to have a humane society.
Herd immunity works if there is vaccine. Without vaccine is very much roll the dice. Under your thinking you and your family could be the weak and get cleansed because the hospital is unable to admit you due to limited bed
You can argue Italy and Spain is unwilling herd immunity, things ain't going well for them.
Sure the USD has a rough time ahead but I’ve read and seen that the fate of the Aussie is pretty tied to the USD
Wish I could find where I read that…
Over the last week $AU has climbed from 0.55 to 0.61 But I don't expect that to last short term.
As for myself, I never complain when our $ drops, as I get remunerated in $US :)they will open the flood gates and the Chinese will come and clean us out,they will buy all the real estate thats left with this shit dollar.
Not just the Chinese.
The Russians have been quietly buying all over Europe.
Im sure they have thier eye on Australia.
Arguably so much better to live here than Russia.
And many rich and well educated Indians too
Why are you moaning if you can get paid in USD/EURO/CAD instead?
OP = Clown
We’ve been riding a high AUD for a long time. Time for the AUD to return to long term averages, or did you forget?
Sheeeesh
Firstly
$1 AUD is >20% above US$0.5
Secondly
What is this thread, some thinly veiled opportunity to flaunt the fact u employ people? Pathetic
AUD to USD is nearing 50c
I'll get paid in USD/EURO/CAD insteadSo, instead of paying you $1 AUD, you prefer to be paid 50c USD. Pretty sure your company will be happy to pay you USD instead with that exchange rate.
Aren't you part of the problem? Even some Australians don't want AUD and prefer USD.
Honestly of I had the option to get paid USD I would
The AUD is doom and economy is doomed. It is built on debt and a over inflated property market.
Our taxes are too high and we have too many useless people living here sucking welfare and contributing nothing to the economy. I mean FFS we literally have a building were junkies can take free drugs in Richmond.
Honest I blame the left wing f*S and self serving politics for destroying us. Australia needs to Fk off 50-70% of ppl on welfare and get rid of 80% of its social support ie commission housing etc
Take all the money into reducing taxes for both individuals and business and the country will flourish.
On top of all that our education systrm is shit the teacher are some of the best paid teachers in the world with some of the poorest standards…
Our justice system protects criminals
In VIC our roads are 3rd world so is out public transport…
I could go on but you get my point
Last thing we need to stop handing money every minority from refugees to indigenous Australians treat everyone the same stop socialist shit and make people work a actually job
You sound like a wonderful human being.
It makes manufacturing almost affordable again huh??
Well this is what happens when we have such high internal wages our currency gets devalued.
See it’s not a bad thing. Tourists would be love’s go it!!
Float the dollar and expect ups and downs.
If it’s any consolation, the $USD is going to 0. What that means for $AUD, who knows..
62 cents now, go home the show is over.
Those that justify lower aud as it creates jobs are delluded. All countries are lowering the interest rate. Lower it and so will do China, Indonesia, etc. Those other countries will always have cheaper labour. You don't even want to compete on cheaper labour, that will be terrible for the Australian quality of life and all that makes this country great.
Don't get fooled, those asking for lowering interest rates and more money printing by the goverment, have a strong motivation for that to happen. They have houses, stocks, gold. Once this situation is over, those assets will significantly appreciate the more the government intervenes. Meanwhile your purchasing power will tank for the many years to come.
AU$MONEY ~ The AU gov sells bonds to the banks, who can onsell it to the reserve bank, the buyer of last resort, they have to buy all bonds unsold, the reserve then gives the government the money. or the bank has if they hold the bonds as collateral or reserve requirements or to back loans & Over time you can bet the yeild (face value of say the 10 year bond will be up or down), if its down, well normaly a buyer of a bond would demand a higher interest rate to compensate for the loss of final face value (what that converted bonds value is when you have it back in your hand as currency)
and the reverse is true, high interest rates means the face value of a bond can drop!
MONEY PRINTING 101: like the gov is doing now breaks the market link. They still create the bond, the banks buy it and immediatly are forced to onsell it to the reserve, who issues the currency to the gov and also manipulate the interest rate to near zero. Free money! Its why trump, wants to use this trick to refinance the 20+ trillion dollar debt.
when you pay taxes they dont pay down anything, its money destruction, a trick to guide society and give some things more value (investment) over sin (alcohol, smoking). The givernment is also the beneficary of the reserve bank, so the tax payer normaly gets that credited at tax time back into the budget bottom line. yes you can print money and owe it to yourself and collect interest, charge taxes and still be cool, the number they scare you with for debt is BULLSHIT. We paid it off once, we were worse off! Chinas smart they print the money and build a city that can sit empty and the activity makes china rich and they pay us with this worthless money. As they get richer they buy up farms and homes. One day your poor in a land of plenty becuase you vote for fools and beleive lies!
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@gyrex: In the past 5 years or so countries around the world have been in currency wars. With many free trade agreements countries are limited in the way they support business, subsidies are prohibited, so keeping your currency low, boosts exports, brings in revenue which boosts economy.
China Europe and US have been fighting this and other economies are just dragged along.
Very simple the RBA doesn’t want to stimulate an already booming housing market, what goes up will eventually come down. When higher interest rates hit, many will be caught, keep dropping and the pain gets worse.
But if our dollar goes up, then business goes overseas causing recession here. So lower dollar boosts the economy.
It’s not just TVs and consumer goods that you and I see everyday, it’s oil, coal, steel and food that we export that balances our economy, thru taxes, royalties and services. In these we compete with other countries like Brazil, Canada, USA etc
So while housing keeps small businesses operating, which is important to spread the wealth, without the major exports we would be up the creek. Unfortunately, because we don’t see that directly we tend to underestimate the effect.
I was answering why the dollar is stuck in a range for the past 5 years. Of course at different parts of this period, the RBA has made some adjustments based on consumer confidence, but underlying this is the currency issue. And they have at times mentioned this. Just that mainstream journalists don’t understand and don’t report that part much.