Australian Dollar

Discussion in 'Property Market Economics' started by MTR, 6th Jul, 2015.

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  1. Aaron Sice

    Aaron Sice Well-Known Member

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    currency wars - trying to make non-manufacturing countries competitive since 2008.
     
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  2. Tekoz

    Tekoz Well-Known Member

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    @Aaron Sice how did you know this big conspiracy theory mate ?
    what book did you read, I'm curious to know. :eek:
     
  3. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    Duh. I know you are being sarcastic, but if not: It's not a secret among the Central Banking circles. That's why central banks are racing to the bottom, they cut rates with the intention of lowering exchange rates to support their local industries.
     
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  4. Tekoz

    Tekoz Well-Known Member

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    @Till Kingdom Come: I know about the policy mate but don't know about the war that @Aaron Sice mentioned above.

    The interest rate lever is not going to help the economy anymore, because even when the interest rate is lowered down, the retail industry still dying here and the GDP growth is not growing either.
    Source: http://www.tradingeconomics.com/australia/indicators

    PS: your name reminds me to this great song:

    Kingdom Come - Twilight Cruiser
     
  5. Aaron Sice

    Aaron Sice Well-Known Member

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    what? what in god's name are you implying?

    the de-valuing of currencies currently underway - globally - in a race to the bottom is noted far and wide among many different economic planes and fields.

    https://en.wikipedia.org/wiki/Currency_war

    it's called a "war" as tongue in cheek, being that the Chinese and Russians are now dealing without the USD which means the USD has to devalue further to be more attractive for use in other markets, like India and Brazil - who are also looking to move away from the USD dependence.

    the AUD in always tied to the USD, therefore we have to wage our own little valuation "war" to make it all come together for Australia, domestically.

    Indonesia isn't accepting USD for any payment because their currency is slipping hard against it, so they now want everyone to convert to Rupiah for domestic spending and transactions.

    that's a "Currency War".
     
    Last edited: 27th Jul, 2015
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  6. Tekoz

    Tekoz Well-Known Member

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    @Aaron Sice : thanks for the enlightenment mate. I didn't know about the news, even Australia largest neighbour doesn't even use USD is something new that I just knew it from your post above :).
     
  7. barnes

    barnes Well-Known Member

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    The amount of trade between China and Russia in 2014 was 88,4 billion dollars, according to Russian stats. Even if all that amount was in local currencies it's not much compared to China and USA amount of trade.
     
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  8. Azazel

    Azazel Well-Known Member

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    I'm in Hawaii, our dollar sucks and I don't even care :p
     
  9. MTR

    MTR Well-Known Member

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    Why would you, you lucky basturd:)
     
  10. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    Read: http://www.rba.gov.au/speeches/2015/sp-ag-2015-06-15.html

    The RBA hold the belief that cutting rates is still an effective policy tool:

    Monetary policy is clearly working to support demand, although it is working against some strong headwinds. These include the significant decline in mining investment, fiscal consolidation at state and federal levels and the exchange rate, which continues to offer less assistance than would normally be expected in achieving balanced growth in the economy.

    In short, monetary policy is working. The transmission mechanism may have changed in some respects, and this could help to explain lower-than-expected growth of consumption and debt of late. But it is hard to be too definitive.


     
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  11. Aaron Sice

    Aaron Sice Well-Known Member

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    and if Russia accept Yuan/Renminbi for gas payments.....?
     
  12. barnes

    barnes Well-Known Member

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    From European buyers? :)
     
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  13. Aaron Sice

    Aaron Sice Well-Known Member

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    no, the petrodollar is alive and well in the EU with freedom coming to the Ukraine.
     
  14. 2FAST4U

    2FAST4U Well-Known Member

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    Monetary policy is working:rolleyes:
     
  15. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    That's what the RBA folks believe.

    Who cares what you think, after all you're not the one setting interest rates :p

    The view that matters is the one held by the actual policy makers. Whether they are correct is another matter. ;)
     
  16. Tekoz

    Tekoz Well-Known Member

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    yes, that's what they think, but in reality the Bank doesn't regard them anymore. Look at the recent case of interest rate hikes http://www.propertyobserver.com.au/...ands-alone-on-its-investor-interest-rate.html

    all of the bank is now raising it despite the interest rate is set at 2% by RBA.
     
  17. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    Nah. The rate hikes in investor loans is just part of the risk mitigation tool. They are worried about the property sector pooping the rate cut party for PPoR loans and business loans. They are now freer to cut rates now that the risk mitigation measures are gaining traction.
     
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  18. Azazel

    Azazel Well-Known Member

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    Hehe. Going through the wad of cash we took a little bit quicker, worry about the CC when we get home.
    More worried about my Mai Tai...
     
  19. MTR

    MTR Well-Known Member

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    Update

    Australian Dollar:
    The Australian dollar moved sharply lower following an increase in the unemployment rate on Thursday. The AUD dropped from 0.7360 to touch intraday lows of 0.7318 as investors reacted to an Australian Bureau of Statistics report that showed the unemployment rate jumped from 6.1% to 6.3%. The increase in the underlying unemployment rate fuelled speculation the Reserve Bank would be forced to amend the current policy stance and cut interest rates to help absorb the slack forming in the labour market. However as investors absorbed the employment data a larger than anticipated uptick in part time employment and an increase in the overall participation rate helped put the brakes on the downturn and the Aussie found support on approaches to 0.7320. Attentions turn domestically to the RBA’s monetary policy statement ahead of critical US Non-farm payroll numbers for direction into the weekend.
     
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  20. MTR

    MTR Well-Known Member

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    Slip Sliding, 70.33


    Australian dollar has broken through multiple key barriers on the downside overnight, reaching an eventual low of 0.7033





    [​IMG]
     
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