Global Financial Crisis

[griffin]

Looks like the renewed interest in resources has propped up our exchange rate after the interest rate cut. I was expecting it to drop a few cents, especially with another huge cut yesterday, but a rise in commodity prices in the last day sent our dollar up to US70c. Looks like the direction of our currency is pegged more to our resources exports, than our cash rates. And as long as China and India remain hungry, our currency should recover gradually. Meaning I can start spending on imported toys again soon...

[autobreadticon]

i hope the prospect of Obama becoming president will give some much needed market confidence

[i_amtrunks]

i hope the prospect of Obama becoming president will give some much needed market confidence

If the Market listened to his speech, then confidence would be sky high right now.

[jacksplatt11]

Just heard on the news that the Bank of England cut England's interest rate by 1.5% to 3%.. I'm no economist, but from what I remember from micro and macro economics they do this to encourage spending?... So is this good for our dollar and the economy, or no...

[STL]

Just heard on the news that the Bank of England cut England's interest rate by 1.5% to 3%.. I'm no economist, but from what I remember from micro and macro economics they do this to encourage spending?... So is this good for our dollar and the economy, or no...

It's good for our economy on many fronts. Firstly cos the UK is a financial hub, heck its as big as the New York, these days so it's a centre of confidence as well. If they get off the ground and out of recession, that'll help w/ the global recovery for sure so that's better for our $.

It's also good for our $ against the GBP cos it means that there's a larger differential b/n our two interest rates and makes it relatively more attractive to invest in Australia. But w/ confidence as it is, its probably not going to help that much. Plus, it's not like we'll buy much from the Poms anyway.

Our best bet is to look for what's happening in China and India. Those are probably the best indicators for us b/c that'll determine how strong our economy will remain in the long run.

[i_amtrunks]

The 1.5% cut is the biggest single cut in Britain's financial History.

if the AU$ was a little stronger, it would make our 5% interest rate look fairly decent.

[jacksplatt11]

Yay petrol getting cheaper and cheaper.. At least if I'm gonna be spending more on stuff due to the dodgy exchange rate, I'll be spending less on petrol