Aussie Dollar

[OZEMADE]

The Australian dollar has surged to a new post float high on Thursday morning.

At around 0700 (AEST), the domestic currency was trading at 107.15 US cents - its highest level since it was floated in December 1983.

Great news, how are the other currencies fairing.

[jackdawson]

the Aussie dollar is the bomb !

got in under .98 cents (or so)

go baby go !

[lovelomsak]

I donot check the Canadian dollar against the american but the Canadian is staying just under the aussie against the baht. They have both steadily been increasing against the baht. They are very close most of the time.

[flying]

Congrats.....Is the Aussie dollar rising on its own strength of backing?

Or is it the USD your measuring against sinking even faster now?

At the end of the day what supports the AUD? Just wondering as I do not know.

How is Australia doing with their debt/revenue?

I know I saw a while back that they had low financial liability ...good on them.

[12DrinkMore]

Congrats.....Is the Aussie dollar rising on its own strength of backing?

Or is it the USD your measuring against sinking even faster now?

At the end of the day what supports the AUD? Just wondering as I do not know.

How is Australia doing with their debt/revenue?

I know I saw a while back that they had low financial liability ...good on them.

1. Returns net around 6% on term deposits.

2. Essentially part of the Asian economy, which is doing OK, in spite of all the doom sayers that it cannot carry on without the Great US Consumer of First Resort.

3. Major commodity deposits

4. Debt/GDP right down the bottom of the league table at 23% (http://en.wikipedia...._by_public_debt)

5. Low unemployment

6. No banking system bailouts.

7. A tight immigration policy.

On the negative side they have experienced a real estate bubble, but this has popped a bit, and the Yen/USD carry trade might reverse if interest rates in Japan/US increase, but I honestly can't see that happening. And the doom sayers are still harping on that the Asian economies cannot keep growing at almost double digit rates without the American Consumer.

For me the most important currency is the Baht, and as long as the AUD/THB remains reasonably stable, with the returns I am getting from the AUD, I'm happy.

Edited April 21, 2011 by 12DrinkMore

[Naam]

agree with "12" on reasons why.

paramount however are "commodities and interest rate differential". i hold a substantial AUD position but i wouldn't dare to go for 1.5% higher interest that a term deposit provides. the sudden and extreme swings of AUD vs. a bunch of currencies in the past are not exactly reassuring. that's why "AUD YES! but on o/n only enabling me to pull the trigger any time."

p.s. a decade ago i changed USD at Brisbane Airport and got AUD 2.08 for USD 1 cash. a holiday in Oz was dàmn cheap then.

[katabeachbum]

agree with "12" on reasons why.

paramount however are "commodities and interest rate differential". i hold a substantial AUD position but i wouldn't dare to go for 1.5% higher interest that a term deposit provides. the sudden and extreme swings of AUD vs. a bunch of currencies in the past are not exactly reassuring. that's why "AUD YES! but on o/n only enabling me to pull the trigger any time."

p.s. a decade ago i changed USD at Brisbane Airport and got AUD 2.08 for USD 1 cash. a holiday in Oz was dàmn cheap then.

spot on

and I would have thought the drop in OZ$ to occure already. but I was wrong it is still strong, to bad for OZ export

[Naam]

the Yen/USD carry trade might reverse if interest rates in Japan/US increase

? ?

[Naam]

agree with "12" on reasons why.

paramount however are "commodities and interest rate differential". i hold a substantial AUD position but i wouldn't dare to go for 1.5% higher interest that a term deposit provides. the sudden and extreme swings of AUD vs. a bunch of currencies in the past are not exactly reassuring. that's why "AUD YES! but on o/n only enabling me to pull the trigger any time."

p.s. a decade ago i changed USD at Brisbane Airport and got AUD 2.08 for USD 1 cash. a holiday in Oz was dàmn cheap then.

spot on

and I would have thought the drop in OZ$ to occure already. but I was wrong it is still strong, to bad for OZ export

you are not alone. even the most optimistic AUD fans did not expect what we saw these last couple of weeks.

[isanbirder]

1.076 this evening... and climbing.

[PEP]

Some years ago AUD was 22 Baht for one Aust. dollar. Yesterday I collected 31.917 per one Aust. dollar. Which of you Aussie Ex-Pats are still knocking our "Female Pelican" PM ?

:rolleyes: :rolleyes: :rolleyes:

[markone1]

Some years ago AUD was 22 Baht for one Aust. dollar. Yesterday I collected 31.917 per one Aust. dollar. Which of you Aussie Ex-Pats are still knocking our "Female Pelican" PM ?

:rolleyes: :rolleyes: :rolleyes:

Did she put those minerals in the ground, and trigger the boom in China needing such commodities? personally i wouldnt trust a socialist Welsh woman claiming to be an Aussie to pour p7ss out of a Wellington boot if the instructions were on the heal!

Next youll be congratulating King Abdullah of Saudi for the fantastic way in which he has built the economy, or Saddam Hussein for keeping oil in the ground until its was worth 120USD + per barrel.

[12DrinkMore]

Some years ago AUD was 22 Baht for one Aust. dollar. Yesterday I collected 31.917 per one Aust. dollar. Which of you Aussie Ex-Pats are still knocking our "Female Pelican" PM ?

:rolleyes: :rolleyes: :rolleyes:

IMO the AUD has appreciated much too fast against the Asian currencies, at this level I am beginning to feel a little uncomfortable holding it. Enjoy it while it lasts, but I cannot see it maintaining this momentum and expect it to fall back, particularly when the interest rates in other countries start rising.

[Naam]

Some years ago AUD was 22 Baht for one Aust. dollar. Yesterday I collected 31.917 per one Aust. dollar. Which of you Aussie Ex-Pats are still knocking our "Female Pelican" PM ?

:rolleyes: :rolleyes: :rolleyes:

IMO the AUD has appreciated much too fast against the Asian currencies, at this level I am beginning to feel a little uncomfortable holding it. Enjoy it while it lasts, but I cannot see it maintaining this momentum and expect it to fall back, particularly when the interest rates in other countries start rising.

AUD is both interest rates and commodity driven and will suffer considerably if the prevailing trend reverses. and i agree with "markone1" that Ms Gillard has nothing to do with the strength of the currency.

[manarak]

The AUD is high, yes, but don't use USD, EUR or GBP as a reference.

These "main currencies" are weak, especially the USD which keeps falling.

The baht is actually pretty stable, as the Swiss Franc.

[Naam]

The AUD is high, yes, but don't use USD, EUR or GBP as a reference.

These "main currencies" are weak, especially the USD which keeps falling.

The baht is actually pretty stable, as the Swiss Franc.

i wouldn't call one year Baht minus 22% vs. AUD or one year Baht minus 21% vs CHF "stable".

[BEENTHEREDONETHAT]

Bought a townhouse in North Idaho a couple of months ago using New Zealand dollars, in three weeks will be going there and buy a car and furnish the townhouse in Aussie dollars. Nice place to spend our summers and the rest of the time in Cha Am. It would be perfect if it wasn't for the travel back and forth.

BT :)

[manarak]

The AUD is high, yes, but don't use USD, EUR or GBP as a reference.

These "main currencies" are weak, especially the USD which keeps falling.

The baht is actually pretty stable, as the Swiss Franc.

i wouldn't call one year Baht minus 22% vs. AUD or one year Baht minus 21% vs CHF "stable".

Almost all currencies had this kind of variation at one time or another in the last 2-3 years.

"stable" is always against a benchmark.

[Wallaby]

A few months ago I was looking at ways to invest my oz$ by buying US$. Then the commonwealth bank offered people a chance to open an account in US$, when the rate was about $1,01.

I had a thought that if the bank was deciding to take our hard earned for $1.01 then they invest it at that rate they could make a quick penny themselves. So I decided that if they thought it was to go higher against the greenback then I would hold on.

I have no idea how much higher it will go as I don't know the current state of the US economy but I think I'll jump in now and buy a heap of US$ and hope our dollar goes south.

So my uneducated simplisitic take on things was that if the banks wanted my money for US$ then they thought our dollar would still go up.

Edited April 25, 2011 by Wallaby

[Naam]

The AUD is high, yes, but don't use USD, EUR or GBP as a reference.

These "main currencies" are weak, especially the USD which keeps falling.

The baht is actually pretty stable, as the Swiss Franc.

i wouldn't call one year Baht minus 22% vs. AUD or one year Baht minus 21% vs CHF "stable".

Almost all currencies had this kind of variation at one time or another in the last 2-3 years.

"stable" is always against a benchmark.

which benchmark? priority benchmark for most expats living in Thailand is THB.

Edited April 25, 2011 by Naam

[electau]

One should remember that the AUD was worth 1.25USD in the 1970s. It was then floated in 1983 by the then Keating government.

The high dollar affects exporters.

Edited April 27, 2011 by electau

[manarak]

The AUD is high, yes, but don't use USD, EUR or GBP as a reference.

These "main currencies" are weak, especially the USD which keeps falling.

The baht is actually pretty stable, as the Swiss Franc.

i wouldn't call one year Baht minus 22% vs. AUD or one year Baht minus 21% vs CHF "stable".

Almost all currencies had this kind of variation at one time or another in the last 2-3 years.

"stable" is always against a benchmark.

which benchmark? priority benchmark for most expats living in Thailand is THB.

Good point Naam - I propose to measure the Baht's volatility against the THB - as you see, it is very stable.

[Naam]

Good point Naam - I propose to measure the Baht's volatility against the THB - as you see, it is very stable.

[supaprik]

A few months ago I was looking at ways to invest my oz$ by buying US$. Then the commonwealth bank offered people a chance to open an account in US$, when the rate was about $1,01.

I had a thought that if the bank was deciding to take our hard earned for $1.01 then they invest it at that rate they could make a quick penny themselves. So I decided that if they thought it was to go higher against the greenback then I would hold on.

I have no idea how much higher it will go as I don't know the current state of the US economy but I think I'll jump in now and buy a heap of US$ and hope our dollar goes south.

So my uneducated simplisitic take on things was that if the banks wanted my money for US$ then they thought our dollar would still go up.

perhaps consider holding on till Sept....

The Commonwealth Bank yesterday raised its forecasts for the dollar, predicting that the Aussie would reach $US1.12 by the end of September, before easing to $US1.04 by year-end and US98c by the end of March.

Chief currency strategist Richard Grace said an extended period of US dollar weakness, a greater volume of international capital invested in the Aussie and a further lift in Australia's terms of trade had triggered the upgrade.

"We now believe the USD won't recover until the Fed formally changes their monetary policy guidance from an easing bias to a tightening bias," Mr Grace wrote in a research note.( quote in Adelaide advertiser )

[Naam]

View PostWallaby, on 2011-04-25 21:14:15, said:

A few months ago I was looking at ways to invest my oz$ by buying US$. Then the commonwealth bank offered people a chance to open an account in US$, when the rate was about $1,01.

I had a thought that if the bank was deciding to take our hard earned for $1.01 then they invest it at that rate they could make a quick penny themselves.

you thought you can judge reasons of banksters?

[electau]

The AUD is in demand and one reason is our trade with China (PRC) and their demand for coal, iron ore and LNG. China is now our largest trading partner.

Australian defence ties are with the USA. Australias future rests on demand from China.

Australia has an official unemployment rate of 5% and the Bank MLR is 4.75%. Inflation is just below 3%. But Australia is a 2 speed economy, it is the mining and energy sectors that are doing well. Our financial sector is strong.

　

[OZEMADE]

The AUD is in demand and one reason is our trade with China (PRC) and their demand for coal, iron ore and LNG. China is now our largest trading partner.

Australian defence ties are with the USA. Australias future rests on demand from China.

Australia has an official unemployment rate of 5% and the Bank MLR is 4.75%. Inflation is just below 3%. But Australia is a 2 speed economy, it is the mining and energy sectors that are doing well. Our financial sector is strong.

　

On Thursday 28 April 2011, 13:22 EST The Australian dollar has passed the 109.00 US-cent mark as market confidence in the global economy remains buoyant.

The local currency also continued to benefit from a weak US dollar, which came under further pressure after the US Federal Reserve gave no indication it would raise its interest rate anytime soon.

At 1016 (+1000), the local unit was trading at 109.03 US cents, its highest level since the currency was floated in December 1983

You little beauty.