Whhy did the A$ appreciate in 2010-12? (1 Viewer)

[enigma_1]

In GFC A$ depreciated --> increased competitiveness in exports.
But in 2010-12 what happened and why did it appreciate? Is it because of Sov debt crisis?? But wouldn't that make it depreciate?

 

[Examine]

From my view it was because of:
- Sustained foreign direct and portfolio investment into the Australian economy due to the export boom creating higher opportunity for higher corporate profits as well as the high interest rates on offer in Australian financial markets. Also Australia has an AAA status of sovereign debt.
- Favourable terms of trade and a rise in commodity prices

I'm a bit rusty atm so someone correct me if I'm wrong.

 

[Rafy]

Quantitative easing

 

[Randox]

From my view it was because of:
- Sustained foreign direct and portfolio investment into the Australian economy due to the export boom creating higher opportunity for higher corporate profits as well as the high interest rates on offer in Australian financial markets. Also Australia has an AAA status of sovereign debt.
- Favourable terms of trade and a rise in commodity prices

I'm a bit rusty atm so someone correct me if I'm wrong.

Yeah this iirc.

 

[Randox]

Quantitative easing

Yeah the QE in the US also impacted on the dollar. Im not too sure if its a factor as large as the ones examine said.