Stupid Australian $

[STL]

What does the Aussie market need to do to recover?

it's not like we are dying completely like the UK Market, and thus deserve to be punished, our market is still going somewhat strong in contrast to Europe and the US.

I don't think it's up to us to determine our exchange rate. We're the 4th most traded currency in the world but that's a function of how attractive it is to invest in us. But many of the reasons for investing in us have dried up so we're seeing less money flowing in b/c of global weakness and hence less demand for our $. This may be a matter of years before we even recover in terms of our currency.

The UK is in a rescession and the US is. Europe is faltering as you've noted and that leads to a very pessimistic outlook. I regret now not taking up law offers and going down the finance route next year. If there's a global rescession, the finance market will be hit hardest and there will be flow on effects to Australia. My original reason for following finance was b/c I figured there were international opportunities for me b/c the company I'm joining has branches in Europe and Asia.

But yeah, I don't imagine things getting better any time soon. Basically, as a collector I'm just going to bite the bullet and accept that my $ won't go as far. What's important is to keep my job and not waste money on holidays/overseas expenditures that I can live without. That will mean we've got more to spend. The $ I fear might keep collapsing b/c each bit of new bad news that hits sees it taking a pounding and people are expecting worse news to come out of Europe. Combine that with hysteria, our $ will take a severe beating as people flock to the safer currencies that hold value which in many cases will be Yen.

http://www.abc.net.au/news/stories/2...ction=business

[griffin]

Unfortunately, I don't see our currency recovering any time soon. I think it will stay where it is while the major western economies remain in flat growth or recession, because our currency is pegged to raw materials/resources (like iron ore and gold). While the major economies stop importing chinese steel (which mostly uses our iron ore) and any of our raw materials, our exports go down and our currency has less value. It's good for anyone still exporting, even at lesser amounts, because they get more AU$ back per unit sent out, but as the sheer quantity of exports drops, others won't be as interested in investing here and in our currency until our exports start going up again.
Which could be up to a year away according to some estimates on how long the British and American recessions will be.

[Golden Phoenix]

I heard that one economist in the UK said that the AU$ was the whipping boy of the world crisis. Now we know how Waspinator feels...

[Gutsman Heavy]

Why universe hate Australia?

[MV75]

Why do people say yen is safe? It's currently in the toilet too.

[Tober]

Why universe hate Australia?

[i_amtrunks]

huh, and here I was thinking it had something to do with this idiot:


This pic really needs to be lol-catted...

[dirge]

Why universe hate Australia?

Because currency traders (who are largely speculative) are panicking. They're moving money around in a frenzy.

Why do people say yen is safe? It's currently in the toilet too.

See above.

It's all driven by fear, not reason. The Yen is seen as safe, so lots of currency traders are moving into the Yen, away from currencies such as AUD & CAD. They're acting like sheep too in that as the flow of money starts and the rate starts to move, more and more rush to cut their losses.

The irony is that a high Yen is _bad_ for an export driven economy like Japan, which is _still_ trying to drag itself out of a long period of stagnation. Japan doesn't do a whole lot of importing, so a high Yen isn't really that useful to Japan.

[Tober]

huh, and here I was thinking it had something to do with this idiot:

He came to mind first too, but at least he is OUT now, so I went topical celebrity trash instead.

[iceburn]

Yen is _bad

hey..don't talk bad about my fiancee okay