Thread: Aussie dollar.

Every dog has its day, now resources are fashionable amongst the investment boys, it won;t be long when they will be saying, ( once again) a Miner is a liar with a hole in the ground.

against the AUD, my SGDs have gone from 1 AUD 2 years ago to now only about 0.75

Originally Posted by peterpan

Every dog has its day, now resources are fashionable amongst the investment boys, it won;t be long when they will be saying, ( once again) a Miner is a liar with a hole in the ground.

Notice that most currencies in the world are up against the sick US dollar ?

I didn't think Thailand had a big mining industry.....nor did Singapore, or Switzerland.

Aussie dollar seems too high ,
but there's a problem if they cut thier interest rates to try to lower it , because they also have rising inflation .
still think its got to fall a lot this year .

Originally Posted by blue

Aussie dollar seems too high ,
but there's a problem if they cut thier interest rates to try to lower it , because they also have rising inflation .
still think its got to fall a lot this year .

It will continue to trend up against the US dollar, even if it falls temporarily. Also, if they have any brain cells left in Aussy land, they would not want to lower it.

Do Aussy people prefer higher gas prices or lower gas prices ?

Originally Posted by socal

Also, if they have any brain cells left in Aussy land, they would not want to lower it.

Do Aussy people prefer higher gas prices or lower gas prices ?

Counting my brain cells now, finished! No we don't need to print money and lower the value our currency.

As for petrol prices, the lower the better, but our petrol prices are based on the wordl price, not propped up by governement susidies.

the world price is in US dollars, so....?

Originally Posted by Bazzy

Originally Posted by socal

Also, if they have any brain cells left in Aussy land, they would not want to lower it.

Do Aussy people prefer higher gas prices or lower gas prices ?

Counting my brain cells now, finished! No we don't need to print money and lower the value our currency.

As for petrol prices, the lower the better, but our petrol prices are based on the wordl price, not propped up by governement susidies.

And what happens to world gas prices when you lower the value of your currency ?

Originally Posted by socal

Originally Posted by blue

Aussie dollar seems too high ,
but there's a problem if they cut thier interest rates to try to lower it , because they also have rising inflation .
still think its got to fall a lot this year .

It will continue to trend up against the US dollar, even if it falls temporarily. Also, if they have any brain cells left in Aussy land, they would not want to lower it.

Do Aussy people prefer higher gas prices or lower gas prices ?

I disagree I guess
the upward trend of the A$ won't continue- it will fall a lot this year.

As asia economy slows thier demand for Australian exports will fall ,
plus the flood will cut exports ,
plus interest rates will rise in Asia -meaning less reason to invested money in Aussie banks, and less money spent in general.
all meaning less demand for Aussie $



Sure a high A$ means cheaper imports -
but it also makes exports less competitive , and as many of its export commodities are priced in US $ ,does that not mean they earn less ,at least in A $ ??
also the high A$ must be hitting the tourism -especially as its a place where people take long holidays ,
Eg Apparently in Melbourne a take out coffee is average A$ 3.30 , not a cheap destination.

Originally Posted by socal

And what happens to world gas prices when you lower the value of your currency ?

nothing unless your currency is the US$

[quote=blue;1653195]

Originally Posted by socal

Originally Posted by blue

Aussie dollar seems too high ,
but there's a problem if they cut thier interest rates to try to lower it , because they also have rising inflation .
still think its got to fall a lot this year .

It will continue to trend up against the US dollar, even if it falls temporarily. Also, if they have any brain cells left in Aussy land, they would not want to lower it.

Do Aussy people prefer higher gas prices or lower gas prices ?

I disagree I guess
the upward trend of the A$ won't continue- it will fall a lot this year.

It will not trend down against the US dollar. Even the US dollar head fake rally in 2008 did not change any long term trends.

As asia economy slows thier demand for Australian exports will fall ,
plus the flood will cut exports ,
plus interest rates will rise in Asia -meaning less reason to invested money in Aussie banks, and less money spent in general.
all meaning less demand for Aussie $

I never said it would rise faster against Asian currencies. The US dollar is the metric now and in terms of US dollars, the AUD is going up.

Sure a high A$ means cheaper imports -
but it also makes exports less competitive , and as many of its export commodities are priced in US $ ,does that not mean they earn less ,at least in A $ ??

If you have assets and you have capital like Australia does, then you do not need to cut your own pay to stay competitive. Germany has higher wages then the US does and it has trade surpluses with China. Japan has higher wages then the US and it also has trade surpluses with China.

also the high A$ must be hitting the tourism -especially as its a place where people take long holidays ,
Eg Apparently in Melbourne a take out coffee is average A$ 3.30 , not a cheap destination.

The tourism industry just has to re adjust.

Originally Posted by DrAndy

Originally Posted by socal

And what happens to world gas prices when you lower the value of your currency ?

nothing unless your currency is the US$

No, gas gets more expensive if you lower the value of your currency, along with every other commodity priced in USD.

The more your currency is worth, the richer you are.