Falling!!! Help!!!

[kpc]

Re: World gives Aussie dollar a walloping

Not sure what they can do. If they lower interest rates to help the economy then more money will flow out.

I'm no economics expert, but I recollect that the RBA can buy AUD on the market to strengthen the AUD if they wanted to.

 

[JohnK]

Re: World gives Aussie dollar a walloping

Again, even the experts are baffled I reckon the RBA should do something about the sinking AUD, but I guess there is always the predictable backlash from exporters...

Exporters? Let them have their 2 minutes in the sun while the rest of us suffer with increasing cost of imports and travel. By the way what percentage of the population would you say are in exports? And how much of the wealth is already in these exporters pockets anyway?

Yes I feel a lot of sympathy for these multi-national exporters....

 

[simongr]

I think the mining boom in WA and QLD might just be linked to exports and the broader economy...

 

[JohnK]

Another bubble waiting to burst. Watch housing prices in WA and Perth in particular crumble in the next 12-18 months....

 

[markis10]

Re: World gives Aussie dollar a walloping

By the way what percentage of the population would you say are in exports?

About half of the working population are employed in export businesses Australia Wide, heavily weighed to the states of QLD and WA and to a lessor extent SA, NSW and VIC tend to be import based employment.

 

[Flashback]

Another bubble waiting to burst. Watch housing prices in WA and Perth in particular crumble in the next 12-18 months....

They've already dropped considerably over the past 12 months, and I think that while they may drop a tiny bit more; it won't be much more than that especially with stimulators such as an increase in first home buyers grant (which I'm about to make use of).

 

[oz_mark]

Re: World gives Aussie dollar a walloping

I'm no economics expert, but I recollect that the RBA can buy AUD on the market to strengthen the AUD if they wanted to.

The RBA was in the market on Friday, although they claim they were providing liquidity rather than propping the dollar up. Whatever the case it helped the dollar off its low against the yen (1AUD-55YEN), the lowest it has been since WWII!

There seems to be a growing view than the Chinese Economy is about to tank.

 

[edwardaggie98]

What's your take on the falling Dollar!

I don't have any idea why,
but is is giving me the "Number 2's"

It's killing me - I am moving back to the US and my final pay will be in AUD - the fact that it's tanking is going to hurt.

 

[JohnK]

The RBA was in there again today buying A$ but from the looks of things it is not doing much good. Maybe it is doing some good as the dollar is staying just above US60c, Euro49C, GBP39p and around JPY55.

I still can't believe that the Australian dollar is bearing the brunt of the global economic crisis. The A$ is now down to SG92c and THB21. I was hoping that I would never live to see these sorts of exchange rates. I think I will cut the visit to SIN from future trips to Thailand and start purchasing my airfares again from Australia. My biggest issue is I do not have a return ticket from Thailand for 3 January and one way tickets are astronomical and almost next to zero award availability....

 

[drron]

Basically most do not think our economy is as strong as we do.The Economist publishes lists of currencies and current account deficits.It really comes as no surprise that those countries whose currencies have fallen the most against the $US are those with negative current account balances like Australia.We have been living beyond our means.And not the Government-Us.

 

[kpc]

RBA steps in as dollar tumbles

The RBA was in there again today buying A$ but from the looks of things it is not doing much good. Maybe it is doing some good as the dollar is staying just above US60c, Euro49C, GBP39p and around JPY55.

THE Reserve Bank has stepped in to prop up the weak Australian dollar, which some experts say could fall below US60c this week
RBA intervention
The Reserve Bank of Australia (RBA) has confirmed it bought the Australian dollar during offshore weekend trade because the foreign exchange market was illiquid.
This was only the third time the central bank had intervened in the foreign exchange market to support the local currency since 2001.

Finally some action by the RBA but more is needed...:idea:

RBA steps in as dollar tumbles | Business | News.com.au

 

[Mal]

Well bit the bullet and ordered ... Got a rate slightly better than 65c. Hurts though when I actually saw the conversion between $US and $A on the amount I wanted. Gonna be an expensive trip this time!

24 hours later, the same Forex place has reduced their rate to ~60c. So made the right decision and saved ~10% on my cost!

 

[Hvr]

I purchased some US$ at 69c recently and now look almost prescient.:-|

Hopefully it will hold at the current rate and not drop any further. Could be an expensive time away.

Of course a rise would be welcome.

 

[serfty]

I purchased my upcoming YUP's on July 31st -USD1045 - I paid AUD1090. ... I guess it won't be the last YUP I purchase, but I wont be purchasing as many ...

 

[JohnK]

And the A$ is continuing to be dumped heavily and even with the RBA intervention it is barely hanging on just above US60c. Not looking good at all....

 

[NM]

I purchased my upcoming YUP's on July 31st -USD1045 - I paid AUD1090. ... I guess it won't be the last YUP I purchase, but I wont be purchasing as many ...

Hmm, just think what you would get now if you cancelled the YUPs for a cash refund .

 

[dclayw]

Have a trip planned to Laos/Thailand for December January, and while it can be cheap travelling in those countries costs have essentially doubled over the past 3 months. I'm pretty annoyed that our currency has dropped so much against everything else including countries like Laos where their currency is essentially worthless, only maintains it's value cause it's pegged to the US$.

Anyway, with the dollar up about 3c overnight to 65c it might be a good time to lock in a rate. The word around is that the dollar is heading back to the 49c level where it was in 2000, that will be a 100% retracement from the 98c level 3 months ago.

What's the best way to lock in a rate? Is buying traveller's cheques pretty much the only way. I'm looking for cost effective solution, best 've found so far is Amex TC with Australia Post, they say no commission but the exchange they give basically works out to be about a 3.5% commission, that's obscene.

 

[futaris]

You can get a traveller's cash card. Essentially a prepaid debit card in US$, Euro, etc.

 

[simongr]

Hmm, just think what you would get now if you cancelled the YUPs for a cash refund .

Did that a while ago - made a decent profit for my company - I would rather have gone to New York...

 

[drron]

In SIN last night-$A=S0.927.
BNE travelex this morning $A=S0.855.
Tell them theyre dreaming.
And Singapore is officially in a recession.