What's your prediction on the Australian Dollar?

[RSD]

Importing another 500K people will only fuel up inflation like petrol on the barbie.

I hope those 500K people like living in tents because the government seems to have forgotten that there is a short supply of housing!

 

[rock86]

It is a guess. The RBA is guilty of manipulation, because the Sydney House Auctions are still on 'fire' and inflation is still intractably strong (like petrol prices not dropping like they should), or rent increases in double figures. In other words expectations of more are still burned into peoples heads, and only parity interest with NZ will curb that feeling. Importing another 500K people will only fuel up inflation like petrol on the barbie.

You're right on 2 fronts. No housing plus record immigration, disaster waiting to happen - even though no one wants to speak about it.

Then petrol on the barbie, funny enough, one of the main drivers that will force the RBA to keep hiking is exactly the fuel that fires up barbies - gas - and the cartel on the East Coast that are still posting gas prices way over the supposed 'cap' set by the government.

Seriously, if we had a decent energy policy from even one of the sides of government having a backbone - they don't though because the self interested political class and their love of gas donor money trumps consituents - our inflation would be much moderate at this point in time of the cycle, yet it's going to get worse because of it.

 

[I love to travel]

You're right on 2 fronts. No housing plus record immigration, disaster waiting to happen - even though no one wants to speak about it.

Then petrol on the barbie, funny enough, one of the main drivers that will force the RBA to keep hiking is exactly the fuel that fires up barbies - gas - and the cartel on the East Coast that are still posting gas prices way over the supposed 'cap' set by the government.

Seriously, if we had a decent energy policy from even one of the sides of government having a backbone - they don't though because the self interested political class and their love of gas donor money trumps consituents - our inflation would be much moderate at this point in time of the cycle, yet it's going to get worse because of it.

And what is your point about the $A which is what this thread is about?

 

[rock86]

And what is your point about the $A which is what this thread is about?

Policies like that impact the $A, along with inflation and interest rates...

 

[RSD]

You're right on 2 fronts. No housing plus record immigration, disaster waiting to happen - even though no one wants to speak about it.

Then petrol on the barbie, funny enough, one of the main drivers that will force the RBA to keep hiking is exactly the fuel that fires up barbies - gas - and the cartel on the East Coast that are still posting gas prices way over the supposed 'cap' set by the government.

Seriously, if we had a decent energy policy from even one of the sides of government having a backbone - they don't though because the self interested political class and their love of gas donor money trumps consituents - our inflation would be much moderate at this point in time of the cycle, yet it's going to get worse because of it.

Maybe the RBA needs to come straight out and say it in black and white to the government - "if you guys don't sort out this domestic gas price problem then inflation is going to keep going up which means that we will need to keep hiking interest rates which means that your problems will keep getting bigger"

 

[rock86]

Maybe the RBA needs to come straight out and say it in black and white to the government - "if you guys don't sort out this domestic gas price problem then inflation is going to keep going up which means that we will need to keep hiking interest rates which means that your problems will keep getting bigger"

Hopefully with Lowe getting the boot in September that is what happens, but he's probably still looking for a cushy role somewhere so may not want to upset the apple cart.

One things for sure, if it doesn't get dealt with rates are going up and more then likely the AUD with it, all the while the domestic economy will be tanking.

 

[RSD]

Hopefully with Lowe getting the boot in September that is what happens, but he's probably still looking for a cushy role somewhere so may not want to upset the apple cart.

One things for sure, if it doesn't get dealt with rates are going up and more then likely the AUD with it, all the while the domestic economy will be tanking.

Yep. Australia used to be the Lucky Country - but over the last 10-15 years we have become the Stupid Country - for doing things like sending all our gas offshore and being forced to pay ridiculous prices for our own gas.

 

[Lynda2475]

rates are going up and more then likely the AUD with it,

Personally, that is a win win for me - more earnings on savings and better buying power when travelling.

 

[OZDUCK]

Yep. Australia used to be the Lucky Country - but over the last 10-15 years we have become the Stupid Country - for doing things like sending all our gas offshore and being forced to pay ridiculous prices for our own gas.

Not in all states. Both sides of politics here, WA, have supported the local gas reservation policy since it was officially introduced in 2006 by a Labor government. Colin Barnett the former Liberal Premier said he was told he was maintaining a "hillbilly policy" by Federal Liberal politician's but ignored them.

 

[wandering_fred]

Perhaps Parliament needs to tell the RBA that the effects of home mortgage rates needs to be taken into account in considering the sources of inflation? And lower AU$$ rates means that it is more expensive to buy imported goods.
Or is that thinking too much wandering
Fred

 

[RSD]

Not in all states. Both sides of politics here, WA, have supported the local gas reservation policy since it was officially introduced in 2006 by a Labor government. Colin Barnett the former Liberal Premier said he was told he was maintaining a "hillbilly policy" by Federal Liberal politician's but ignored them.

In any population there will be exceptions to stupid - not everyone can be the village idiot!

 

[clifford]

Yep. Australia used to be the Lucky Country - but over the last 10-15 years we have become the Stupid Country - for doing things like sending all our gas offshore and being forced to pay ridiculous prices for our own gas.

I think that the Qataris have worked that out. Our politicians need to get some backbone and stop kowtowing.

 

[burmans]

Maybe the RBA needs to come straight out and say it in black and white to the government - "if you guys don't sort out this domestic gas price problem then inflation is going to keep going up which means that we will need to keep hiking interest rates which means that your problems will keep getting bigger"

The RBA have already said that there are a number of policy options to get inflation down but that’s up to the government. But as always, the policies may attract flack (eg from the gas lobby in example above) and governments do love to have an ‘independent’ body to cop the blame.

 

[I love to travel]

Well 8t certainly has jumped post Fed decision. Let's see whether it holds gains.

 

[RSD]

Well 8t certainly has jumped post Fed decision. Let's see whether it holds gains.

Post Fed decision and after the jobs figures released in Australia today - chances of another RBA rate rise next month are looking quite high at this stage.

 

[rock86]

Post Fed decision and after the jobs figures released in Australia today - chances of another RBA rate rise next month are looking quite high at this stage.

4.85% before Phil bids his merry way, while everywhere else is likely holding pretty steady.

Then when the proverbial hits the fan here (NZ just about there because they went harder earlier, EU starting to slow as well) - they'll likely be reversing course quickly because they don't take the current future indicators into account.

 

[RSD]

4.85% before Phil bids his merry way while everywhere else is left dealing with the mess

Fixed!

 

[Flashback]

Well 8t certainly has jumped post Fed decision. Let's see whether it holds gains.

What is 8t? Does that mean 8 grams of T?

 

[SydneySwan]

What is 8t? Does that mean 8 grams of T?

I was confused as well.

 

[I love to travel]

What is 8t? Does that mean 8 grams of T?

Sorry it was a typo. I meant to say well it certainly........

Dollar jumped further overnight too.