What happened to the Aussie dollar?

[Kenny202]

Woke up this morning first time I seen it under 20 baht. Its dropped a baht in a week. I know theres Corona at the moment but thought every one in the same boat. Any reason the AUS$ dropping like this

[Gumballl]

Apparently the AUS$ will no longer be printed/circulated. The Ruan, or Renminbi, will become the new currency in AUS.

 

Seriously, focus your attention on AUS news, not currency rates. Your answer may lay there. Perhaps a cut in interest rates makes the AUS$ less attractive for investors.

[PatOngo]

Great news! I'll be shipping more Baht out today! 

[Gumballl]

1 minute ago, pdtokyo said:

news from the front, the most tradeable currency in Oz right now is your standard 6-pack of Quilton 3-ply. Some reported paying a premium for the Aloe Vera flavour. Even ATO accepting the stuff.

Ironically, one of the symptoms of the COVID-19 virus is not the sniffles. Here in the US, dummies are buying out toilet paper (and obviously, tissue paper). A week ago, hand sanitizer liquids sold out.

 

Indeed, the sky is falling.

[Lacessit]

The $18 billion stimulus package means the budget surplus has been abandoned ( not that it was ever anything but Liberal BS ), hence the currency markets are reacting.

On the bright side, my Thai baht savings are appreciating.

[Kenny202]

I been coming here around 9 years. When I first came AUS$ near parity with US$ and about 33 baht to the dollar. Lived here 6 years. Ex rate was about 27 baht to the AUS$ when I came and I was certain would get back to 30+ as it was a couple of years before so in the following years I have just dribbled money over here as required hoping it would bounce back. It's only got worse. Today a new low. It's taken about that long for my super to get back to where it should be and now the stock market has nose dived again, and I am due to cash in next year. As my grandmother used to say I have the financial luck of someone who's killed a Chinaman

[ripstanley]

Its Black Friday

[toofarnorth]

46 minutes ago, ripstanley said:

Its Black Friday

Its also Friday 13th.

[Logosone]

Yes, there is a reason the AUS Dollar is dropping like this.

 

You see the Ozzie Dollar is a luxury currency, it's linked to precious metals due to mining, metals that are used in industrial production. When times are good the AUS Dollar goes up as economies do well and need Oz mining supplies. When times are bad the AUS Dollar goes down because there is less demand for mining supplies.

 

Times are bad now, so there is little demand for the AUS Dollar. Not much production now with major economies losing growth or going into recession like the UK.

 

In addition the Ozzie Dollar depends  exceptionally greatly on China, which has now already published much less growth, so the Chinese, in the foreseeable future will buy less from Oz.

 

As coronavirus increases in some countries expect the AUS Dollar to fall further, though we could see a dead cat bounce at times.

Edited March 13, 2020 by Logosone

[ripstanley]

44 minutes ago, toofarnorth said:

Its also Friday 13th.

Growing up in Australia Black Friday was  on Friday 13th. It relates back to fires in 1939 

 

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

[UbonThani]

4 hours ago, pdtokyo said:

Poor marketing? Scotty promoted above his level of competence??

 

I expect your question will spawn a long and tedious thread, my bet 12 pages before it fizzles when someone else asks "What's the story with this Corana virus thing?"

 

*sigh* i've only 200 posts and already twisted bitter and cynical. I never used to be that person.

Nothing to do with Scomo who is doing well.

 

Low % rates

World eco tanking so less purchase of minerals and goods

 

 

[madmen]

4 hours ago, PatOngo said:

Great news! I'll be shipping more Baht out today! 

Same here leave for oz shortly and income is rent paid in baht. Burn baby burn!

[simple1]

AUD has been lower than 19 baht to the dollar some years ago (approx 25 years ago). Number of factors now. ASX has lost AUD500 billion from 20/01/20 to date, end of predicted 19/20 surplus, billions being spent to prop up the economy. lowest level against US$ since 1987. China trade - China transitioning to a service economy equals less commodity sales etc etc. Forecast Oz will be in recession for at least two quarters.

[metisdead]

A post in which the quoted content had been altered has been removed as per the following:

 

16) You will not make changes to quoted material from other members posts, except for purposes of shortening the quoted post. This cannot be done in such a manner that it alters the context of the original post.
 

https://forum.thaivisa.com/terms/

[samran]

Its pretty simple, the AUD is a commodity currency and for the past few years, a proxy for China.

 

On top of that, international funds are selling their positions and pulling money out of Australia, making the AUD weaker verus a basket currencies.

 

The upside? The whole reason Keating floated the dollar in 1983 was so when we get external shocks like this, a weaker dollar acts as shock absober for the economy. Our exports, as well as assets will be cheaper to purchase, and with that people keep buying and investing more than they would have done otherwise.

 

Whether it is enough to keep Australia falling into recession we will have to wait and see, but if ScoMo can pump prime the economy enough, it just might help do the trick.

 

The last thing you want is people being unemployed. Following the last recession in the 1990s, most people over 55 who lost their jobs never got another one back.

Edited March 13, 2020 by samran

[JimHuaHin]

https://www.channelnews.com.au/what-the-aussie-dollar-plummet-to-0-62-means-for-consumers/

 

 

[Russell17au]

Plus with the drought which reduced the grain growing and exports. An example of that is Australia grows a lot of rice and exports a lot of it to places like China because it is a different quality of rice. The normal harvest is 800,000 tonnes but because of the drought the production was reduced to only 80,000 tonnes with wheat, milo and the other grains being drastically reduced as well.

[Lacessit]

1 minute ago, Russell17au said:

Plus with the drought which reduced the grain growing and exports. An example of that is Australia grows a lot of rice and exports a lot of it to places like China because it is a different quality of rice. The normal harvest is 800,000 tonnes but because of the drought the production was reduced to only 80,000 tonnes with wheat, milo and the other grains being drastically reduced as well.

Milo? Nestle grows it?

[Russell17au]

14 minutes ago, Lacessit said:

Milo? Nestle grows it?

Grain Sorghum (Milo)

[FarFlungFalang]

10 hours ago, pdtokyo said:

Poor marketing? Scotty promoted above his level of competence??

He's what commonly known as a "post turtle".Dutton's not doing so well he's contracted the dreaded COVID 19.

 

https://www.abc.net.au/news/2020-03-13/peter-dutton-diagnosed-with-coronavirus/12055104

[White Christmas13]

6 hours ago, simple1 said:

AUD has been lower than 19 baht to the dollar some years ago (approx 25 years ago). Number of factors now. ASX has lost AUD500 billion from 20/01/20 to date, end of predicted 19/20 surplus, billions being spent to prop up the economy. lowest level against US$ since 1987. China trade - China transitioning to a service economy equals less commodity sales etc etc. Forecast Oz will be in recession for at least two quarters.

Today's rate

 

[Stevemercer]

Thailand is reliant on Chinese tourists and the economy is export driven. A blip in China's growth is also a blip in Thailand's economy.

 

The Baht has fallen against the US dollar, Euro and even the British pound. The AUS$ seems to be the only currency bucking the general trend!

[simple1]

37 minutes ago, White Christmas13 said:

Today's rate

 

As a comparison, just checked Kbank rate. Cash note 19.36 for AUD, telex transfer rate 19.55

[Iron Tongue]

AUD is trading low because of global economic issues. 

 

AUD is trading low to baht because of still-inflated baht valuation.

[BeltAndRoad]

8 hours ago, Stevemercer said:

Thailand is reliant on Chinese tourists and the economy is export driven. A blip in China's growth is also a blip in Thailand's economy.

 

The Baht has fallen against the US dollar, Euro and even the British pound. The AUS$ seems to be the only currency bucking the general trend!

In Isaan the other day watching my son catching rhino beetles for his grandmother to cook, while his uncle was butchering a chook, i realized Thailand doesn't rely on anyone. 

[URMySunshine]

Same thing's happening to sterling with the interest rate cut and then we will print,print ,print to try to buy our way out of the coming depression - folk like real stuff not fake money. 

 

39.19 Thai Baht

[daveAustin]

AUD overpriced for years, but wouldn't base state of play on the baht (or USD) which, though the 'experts' big it up regards current account/FOREX reserves etc, is going to to have a serious awakening before long.

[mstevens]

22 hours ago, Kenny202 said:

I been coming here around 9 years. When I first came AUS$ near parity with US$.

 

And now the Aussie dollar is virtually at parity with the NZD.

[Henryford]

Do Australians care about the exchange rate? I thought they were all (property) millionaires.

[5633572526]

On 3/13/2020 at 7:14 AM, Gumballl said:

Ironically, one of the symptoms of the COVID-19 virus is not the sniffles. Here in the US, dummies are buying out toilet paper (and obviously, tissue paper). A week ago, hand sanitizer liquids sold out.

 

Indeed, the sky is falling.

Fake news