xchange rate (2 Viewers)

[rukawasan]

alrite... forgive my ignorance... but i havent been keeping up with the eco stats n trends lately ever since hsc started...
why have the $A been appreciating so much lately... i mean before the interest rate rise...

n can sombody give me a farily concise but detailed rundown of $A trends n why from... say... i duno... 2000 to now please

 

[Nick]

$A has been appreciating cos the world is growing again, people are demanding our stuff.. we got trade goin on with China, Japan, Singapore, US etc etc..

plus all the talk about raising rate, people wanna buy now before the dollar gooes up too much..


i dunno abt a concise but detailed rundown.. leave that to someone else..

 

[timmii]

Nick, I would say the main reason for aus's apparent appreciation recently has more been the US's depreciation! The US has an enormous CAD, a "jobless recovery", questionable involvement in iraq, a still uncertain stockmarket after corporate governance scandals, and enormous budget deficits- at a federal and state level.

But yes, we have a high interest rate differential ---> capital inflow. I wouldn't rate our exports as being a reason for the appreciation, because our large trade balance means that we're importing far more than we're exporting, which means we're supplying far more australian dollars than are being demanded, and that, ceteris paribus, that would result in a depreciation of the currency.

 

[meh]

Positive factors Influencing the $AUD

weaker US dollar to continue as US CAD on the rise
strong foreign demand for Aust assets (partic Japan)
more that 3% interest rate positive differential b/w Aust and US attracting more foreign investment
AUD is seen by traders as undervalued in recent years

Negative factors influencing the $AUD

Small eco like Aust are bypassed by US fund managers for investment limits $A scope for further rises
CAD is deteriorating

At the moment the positive outweigh the negative hence the rise

 

[TastesGoodBut]

heya ruka!!

well basically from one high boy to another

The US has been in a recession
The bush govt dropped its policy of maintaining a high exchange rate after it realised the way to improve there conomy was to lower their exchange rate
The interest rate differentials which means more funds are attracted here than the US (we are sumthing like 4% higher interest rates than them or sumthing)

we have also risen by 13% since april 2001 against the Yen and against the TWI

its all in the sheets we got!

 

[Wiggum]

Which sheets exactly? Ruka's too smart for us anyway, even though i'm surprised someone like him needs to ask questions about the recent stuff. Go try and top pigz 4 us (Check your PM's)

 

[TastesGoodBut]

umm.. the interest rates were in the current economics by tim riley things... that gives u everything about the current rises up until around june i think.. its goine up even more since then.

i think its called 'Recent changes in the Australia exchange rate' or sumthing.

Im rather happy with my foucs for ecos... hopfully ill have most of it learnt by tues so tuesday can be mainly a past paper day.

 

[Wiggum]

Originally posted by TastesGoodBut
i think its called 'Recent changes in the Australia exchange rate' or sumthing.

Ta.

Hopefully we can all do well how about that?