Australian Dollar 2018

I don't see how Labour could cause that. But I think it'd be quite unlikely that politicians want to come to that scenario given their vested interest.

 

Felix qui nihil debit..

 

debEt!

 

When Shorten , Cameron and their union comrades run the country

 

Please elaborate

 

Seems like the Aussie is finally breaking down

 

Yes heading south 74.4 yesterday, be interesting to see how low it goes, been a yo yo ride
There were predictions of hitting 65 in 2018??

 

Your first post on this continuous thread, 6th July 2015

Interesting, Aussie $ hit all time low of 75 today, RBA will be happy with this.

MTR

Australian Dollar

 

Lol, 3 years ago.....

 

@turk , exactly my sentiment. RBA meeting today which will most probably prop it back up a bit

@Simon Hampel , that's exactly my next move financially. Need an USD income stream

 

Totally agree that the next move for the AUD is down for the next few years.

This is why I am not as bearish as most people about property, particularly in Sydney. I expect the falling dollar to absorb most of the real property price declines. Sydney property may even correct upwards if the dollar falls too much.

 

Just curious John are you referring to foreign buyers?
I don't see wages going up just because AUD is going down.

 

Hi Firststep,

Yes, in part the return of foreign investors who will view Australian property as relatively cheap.

However overall, a weaker currency is inflation. So I see nominal prices including property and wages partly correcting for the weaker dollar.

I often point to the so called property boom between 2012 and 2017. During which time the AUD declined by 40% and property rose by about 40%. Markets are constantly rebalancing prices.

Kind regards,
John

 

That was without apra intervention. And besides , for this hypothesis to be correct, it should apply for the whole country not just Sydney Melbs, which it has not.

So it goes to show there are other factors at play not just currency. In fact for the past year aud has gone down but no corresponding rise in syd/melb markets from that.

If anything lower AUD likely means more tourism $ to places like GC driving higher wages and property prices.

For now the biggest factor is still the apra tightening. In fact if the property slump coincides with a recession from china -usa trade war, AUD will tank with iron ore prices and all foreign buyers will be selling Aussie assets rather than buying.

 

Thanks for taking the time to explain.

I'm not sure if foreigner want to jump into a falling market when they have 'safer' options elsewhere. Expats might be tempted as they'll likely return in the future.

Time will tell I guess.

 

Hopefully never!

 

So why do investors feel compelled to buy property when clearly market is slip, sliding

 

Mining boom. .2011/12. AUD hit I think 1.09

 

Hmm. I thought that guy was asking about interest rates. lol