What's your prediction on the Australian Dollar?

[Warks]

Isn't 0.75 the magic number? Not for us but the Reserve. Remember how it sat around that for years on end? Ah the old days.

 

[Awesom Andy]

Isn't 0.75 the magic number? Not for us but the Reserve. Remember how it sat around that for years on end? Ah the old days.

If it can go 40% above that, I guess it can just as easily go 40% below that.

 

[JohnK]

Isn't 0.75 the magic number? Not for us but the Reserve. Remember how it sat around that for years on end? Ah the old days.

The Reserve Bank should stop interfering and let the market decide.

 

[amaroo]

The Reserve Bank should stop interfering and let the market decide.

The market is, and it will continue to drive it down, down, down ... IMO

 

[ellen10]

Not too much I hope. Booking and planning our trip for September.

 

[drsmithy]

That makes no sense. Actually 0.77 makes no sense either.

This country creates practically nothing of value and imports just about everything it consumes.

Our economy for the last decade or so has been largely based on selling raw materials to China and swapping houses with each other using money borrowed from foreigners.

We do not have a culture of innovation (most people think property "investment" is the best way to make money), nor a powerful military, the world's most expensive real estate and the population holds mind-boggling levels of debt.

In short, we're buggered.

What would be the basis for a strong currency ?

 

[cove]

These currency changes are assisting us with exporting things we manufacture.

 

[JohnM]

These currency changes are assisting us with exporting things we manufacture.

I thought that you were an importer cove. What do you manufacture - apart from ATO points .

 

[cove]

We make a few hundred items out of moulds we own in Oz.
I am more known on this forum for making miles and points mainly because I can.
My mother called me unAustralian when she realized I was an importer so in 1986 we started making things and I enjoy that part of our business. Heck that was almost 29 years ago and it seems like yesterday.

 

[JohnM]

We make a few hundred items out of moulds we own in Oz.
I am more known on this forum for making miles and points mainly because I can.
My mother called me unAustralian when she realized I was an importer so in 1986 we started making things and I enjoy that part of our business. Heck that was almost 29 years ago and it seems like yesterday.

Onya, mate - you could save Oz!

 

[cove]

I have another family member who makes products than are exported to lots of places including countries where the last two letters are AN.
Yes we need more Australian makers.

 

[Warks]

This country creates practically nothing of value and imports just about everything it consumes.

Our economy for the last decade or so has been largely based on selling raw materials to China and swapping houses with each other using money borrowed from foreigners.

We do not have a culture of innovation (most people think property "investment" is the best way to make money), nor a powerful military, the world's most expensive real estate and the population holds mind-boggling levels of debt.

In short, we're buggered.

What would be the basis for a strong currency ?

Our willingness to pay more than anyone else for stuff? The Australia tax.

 

[whatmeworry]

These currency changes are assisting us with exporting things we manufacture.

So your the one that is still manufacturing?

 

[JohnK]

The market is, and it will continue to drive it down, down, down ... IMO

So if the Reserve Bank stopped interfering it would still go down? Why are they then wasting money to force it down if it will go down naturally.

I am not an expert. Far from it.

 

[marki]

Even so called experts get it wrong! So you might be right

 

[hummel]

Nope - sustained dry period followed by soaking rains means huge demand by Australian restockers for cattle / sheep - insatiable demand by China for secondary cuts - 20%+ decline in AD/USD exchange rate making Australian exports much more attractive to many different markets = huge windfalls for Australian livestock producers = unbelievably high supermarket prices domestically.

Winners and losers on both sides - but again Australian consumers will take it in the neck as result of tumbling Aussie dollar.

Not just China too I'm sure you know. Friend has big orders going out to UAE and Sth America. Just can't get the stock!

 

[marki]

How long will the currency wars last?
Central banks in emerging and developed economies alike are continuing to pursue unprecedentedly activist – and unpredictable – monetary policy.

 

[marki]

Chinese investors buy Daydream Island
China Capital Investment Group buys Daydream Island in the Whitsundays, Queensland. WHY ?????

A falling Australian dollar and growing appetite from Chinese investors has triggered a round of upgrades to Queensland's tourism assets with Shanghai-based China Capital Investment Group the latest to plan an overhaul of its newly purchased Daydream Island.

 

[ellen10]

Oh wow
We are now selling off whole islands

 

[Cruiser Elite]

my friend (a foreigner in china) purchased a 70 year lease. They figure that might be long enough

MEL I meant to respond to this but forgot - I did some research on this in China 2 weeks ago - laws have / are changing.

Now this what I was able to glean from my learned friends:

• ~2 years or so go leasehold was indeed 50yrs and restricted to Chinese Nationals
• Law was changed to 70yr leasehold and foreigners legally entitled to purchase
• Next month FREEHOLD will replace LEASEHOLD for ALL Real Estate. Existing 70yr leases will convert to FREEHOLD
• FREEHOLD available to both Chinese Nationals and Foreigners

Again info supplied by my learned Chinese associates. They did both go on to say ALL laws in China are subject to change at the whim of the ruling party at any point in time - ie could easily see FREEHOLDrevert to LEASEHOLD at any point in time in future.

China - never a dull moment!