Australian dollar hits below 27 baht

[yougivemebaby]

Why is the USD so much stronger but the baht against the dollar stays about the same. (Compared to most of the other major FOREX)

[Bigstef]

"Australia exports very little now its all made in China---Jessi"

Jessi, Please...................

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"The economy of Australia is one of the largest capitalist economies in the world, with a GDP of US$1 trillion as of 2013

In 2010, Australia registered a $16.8 billion trade surplus, with goods and services exported to more than 200 countries.

http://www.dfat.gov.au/publications/trade/trade-at-a-glance-2011.html

Means nothing. We in Canada have almost balanced our budget but in these funny money times no credit is given. Our currency is in the same boat as the land of OZ. I have a hard time believing the SET is the 3rd best stock market in Asia or maybe the world for that matter. The US stock market is vacuuming up money from around the world. Do you think Russian Oligarths will accept a 50% haircut in the ruble not bloody likely. Its the same for all the rich world wide who live in countries with currencies in free fall. Even though the American unemployment rate has fallen to 5.8% which is considered full employment Yellan and company still in a "steady as she goes" mode. This will only drive the dollar higher and soak up yet more fallen currencies. This will soon impact the USA and the world the as cheap imports flood the country and their expensive exports will go no where.

Too bad we depend of exportation the big company are pressing Harper to let dollar go down.......

[Guest]

The sooner the Abbott Government is removed, and responsible economic planning returns - eg increasing focus on renewable energy resources and move away from mining, and economic diversification - the better.

Most Australian economists know that Chinese demand for Australia's coal, iron ore, etc. would have to peak and decline once Chinese growth peaked.

Poor economic planning Hockey et al.

The decline in the A$ will probably lead to greater inflation, greater unemployment, a further slide in the A$ and more misery for us expat Aussies who have most of our financial assets, such as pensions and super, back in Ozland.y

yea we all knew exports would slow when China slowed but what would you suggest we diversify to, move into what??? if there was something else don't you think they would do that?????

jim can you give us the benefit if your knowedge please

[slipperylobster]

google "RUB THB" and check out the graph

May make you feel abit better

IM OFF TO RUSSIA

Yeah, they are just doing great... Nice call Putin...Brilliant idea there in the Ukraine, eh? Need more sanctions..huh?

[JimHuaHin]

The sooner the Abbott Government is removed, and responsible economic planning returns - eg increasing focus on renewable energy resources and move away from mining, and economic diversification - the better.

Most Australian economists know that Chinese demand for Australia's coal, iron ore, etc. would have to peak and decline once Chinese growth peaked.

Poor economic planning Hockey et al.

The decline in the A$ will probably lead to greater inflation, greater unemployment, a further slide in the A$ and more misery for us expat Aussies who have most of our financial assets, such as pensions and super, back in Ozland.y

yea we all knew exports would slow when China slowed but what would you suggest we diversify to, move into what??? if there was something else don't you think they would do that?????

jim can you give us the benefit if your knowedge please

Certainly jewell49.

I think it was about a decade or so ago that the Productivity Commission produced a paper/report on the Australian economy.

The paper/report basically warned of the danger of Australia replying too much on the mining sector - minerals, gas, oil, etc. - for long-term future growth due to (i) the possibility of large declines in the prices of these commodities, (ii) decline in global demand for these commodities, citing as an example future peaks in Chinese growth and demand, and (iii) the probability that some developing economies would soon increase thier production of some of these commodities, which would inturn influence prices and the demand for Australian commodities.

One of the recommendations of the paper/report was the urgent need for economic diversification - tapping into the growing demand for tertiary education, for medical tourism (interesting that some middle class Australians, amongst others, come to Thailand for non-urgent medical procedures, but some wealthy people in Asia go to Australia (several hospitals near you on the Gold Coast have marketed thier services in Asia)) - in Australia. In essence, it was advised that governments put more effort into expanding the tertiary (provision of tangible services), eg maintenance, personal and professional services, retail and wholesale trade, security, storage, transport, etc. and quaternary (information processing), eg administration, education, health, media, public service, etc., sectors of the economy.

The paper/report also highlighted how there had been a gradual government defunding of scientific endeavours in Australia, and industry moving away from funding the development of innovative technological/scientific advances, and cited cases of ideas and products developed in Australia or by Australians overseas, which failed to receive support in Australia.

I think that maybe enough.

[VegasVic]

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Why is the USD so much stronger but the baht against the dollar stays about the same. (Compared to most of the other major FOREX)

The U.S. Dollar is stronger vs. most of the worlds currencies for a few reasons, however the primary reason is the fall in oil prices. As far as the Baht vs. U.S.Dollar goes the Baht has indeed weakened from below 28B:$1 to now 33B:$1. The Aussie dollar and Euro (as well as the YEN) will likely continue to fall vs. the U.S. Dollar in 2015 for different reasons. The Aussie will fall in value due primarily to the massive drop off in exported raw materials to China, and the Euro will continue to fall due to deflation in Europe and rising interest rates in the U.S. by mid year. I have read two different reports that see the Euro getting to par with the U.S. Dollar late in 2015-early 2016. As far as the Baht is concerned, I can remember a report that the BOT did 4-5 years ago that figured the "sweet spot" for the Baht vs. the U.S. Dollar was in the 35-38 range, my guess is that we will see the Baht gravitate towards that range during 2015

[zierf1]

Using some basic technical analysis, I've come to the conclusion that the AUD is doomed to continue falling due to the strenghthening USD over the short & medium term(lucky us Americans ). I would suggest that you Aussies prepare for a much lower currency rate. If I were an Aussie I'd probably start hoarding us dollars or thai baht asap.

[SheungWan]

Using some basic technical analysis, I've come to the conclusion that the AUD is doomed to continue falling due to the strenghthening USD over the short & medium term(lucky us Americans ). I would suggest that you Aussies prepare for a much lower currency rate. If I were an Aussie I'd probably start hoarding us dollars or thai baht asap.

'Basic technical analysis': would that be using Chang or Leo enhanced economic charts?