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Exchange rate...Please explain.

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  • #16
    Im glad atm took a punt last year when haslab offered Australians a chance to back their current project due next year. Eb games were chosen as exclusive supplier and first time au got a chance so locked in $100 au vs the hasbro asking $550 usd

    way au $$ is going its nearly 1/4 price or more price variation atm increase
    you can always expect change in life..except from vending machines

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    • #17
      Originally posted by nmercury View Post
      I don't understand why our AU$ is at 58c US$. Surely USA is just as f*cked as Aust (if not more) with Covid19. We are being told that we produce 3x enough food, we still have minerals in the ground and we seem to be managing the problem better than some other countries.
      Is someone able to explain this in simple terms so a layman like me can understand why this is so.
      I know the world is pretty f*cked up right now, but I don't understand why this makes our AUD so low. We are all on the same planet, each country is facing the same problems...
      This is just panic withdrawal of all cash from around the world to so called “safe havens”....namely USD, JPY, probably Swiss Fr, even Euro to a lesser extent.

      Basically anything but AUD. It has absolutely no foundation in reality or facts.

      Probably has no bottom at the moment, but I’m guessing the RBA is intervening now to prop it up.


      Sent from my iPhone using Tapatalk

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      • #18
        Mismanagement on a grade scale for decades/rewarding incompetence has become the national ethos/sell off of infastructure to Communist China etc etc etc ,

        No production , no services , flooded with immigrants , masses of dependants .
        Credit/ debt bubble , housing bubble that just popped .

        Anyone caught holding AU currency , just got slammed and lost most of their purchasing power , thus causing imports to shot thru the roof , thus killing sales in Australia = Bankrupt company = layoffs = can't pay their overpriced housing loan .

        Will get ugly for all those people who bought overpriced real estate , we will see massive waves of bankruptcys coming over the next few years .

        But fear not , big daddy government is going to print money and give it out to everyone .

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        • #19
          Hyper inflation? I remember seeing a guy on news he was from South America, he had a wheel barrow of cash to buy bread lol

          Sent from my AGM A8 using Tapatalk

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          • #20
            A gumtree leave will have an exchange rate of $327.78 if this goes pear shaped..

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            • #21
              OP maths is sketchy

              if a piece of gold is worth $1000 USD then its worth $1724 AUD (@58c). I think just converting the wrong direction.

              Our currency is a function of two main things - the amount of demand for our exports - think iron ore and the level of our interest rates relative to other countries.
              If we have higher interest rates our currency will go up as OS funds flow into oz to get the higher int rates. vice versa if our rates are low relative...
              If Iron Ore demand is high (i.e china is not shut) then our currency goes up along with iron ore prices (and other mineral and agricultural exports)

              so our currency has gone backwards recently because a) china s shut and b) our rates have dropped.

              As an interesting aside my oldest son (2nd year at UQ in honors finance) entered a Citigroup competition last week to invest $50M USD in the current markets with a 6 month view. They had to invest in currency, commodities and equities(shares). In theory, not real dollars.

              His currency moves were to short the Indian rupee, long the aussie and south korean currencies. Rationale is India is going to be devo'd. They have 4.3 test kits per 1M people. South Korea got sold off badly when it first got there but they have it under control and currency will bounce. Aussie dollar will go up when China re-opens which is starting to happen.

              I think the USD will shorten like it did in 2008/2010 in the next 3 months - get ready to grab that container of games..












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              • #22
                Originally posted by stuba View Post
                OP maths is sketchy

                if a piece of gold is worth $1000 USD then its worth $1724 AUD (@58c). I think just converting the wrong direction.

                Our currency is a function of two main things - the amount of demand for our exports - think iron ore and the level of our interest rates relative to other countries.
                If we have higher interest rates our currency will go up as OS funds flow into oz to get the higher int rates. vice versa if our rates are low relative...
                If Iron Ore demand is high (i.e china is not shut) then our currency goes up along with iron ore prices (and other mineral and agricultural exports)

                so our currency has gone backwards recently because a) china s shut and b) our rates have dropped.

                As an interesting aside my oldest son (2nd year at UQ in honors finance) entered a Citigroup competition last week to invest $50M USD in the current markets with a 6 month view. They had to invest in currency, commodities and equities(shares). In theory, not real dollars.

                His currency moves were to short the Indian rupee, long the aussie and south korean currencies. Rationale is India is going to be devo'd. They have 4.3 test kits per 1M people. South Korea got sold off badly when it first got there but they have it under control and currency will bounce. Aussie dollar will go up when China re-opens which is starting to happen.

                I think the USD will shorten like it did in 2008/2010 in the next 3 months - get ready to grab that container of games..











                I think Aussie dollar will recover very very slowly. Gold and USD are the safe things at the moment.

                Sent from my AGM A8 using Tapatalk

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                • #23
                  Originally posted by stuba View Post
                  OP maths is sketchy

                  if a piece of gold is worth $1000 USD then its worth $1724 AUD (@58c). I think just converting the wrong direction.

                  Our currency is a function of two main things - the amount of demand for our exports - think iron ore and the level of our interest rates relative to other countries.
                  If we have higher interest rates our currency will go up as OS funds flow into oz to get the higher int rates. vice versa if our rates are low relative...
                  If Iron Ore demand is high (i.e china is not shut) then our currency goes up along with iron ore prices (and other mineral and agricultural exports)

                  so our currency has gone backwards recently because a) china s shut and b) our rates have dropped.

                  As an interesting aside my oldest son (2nd year at UQ in honors finance) entered a Citigroup competition last week to invest $50M USD in the current markets with a 6 month view. They had to invest in currency, commodities and equities(shares). In theory, not real dollars.

                  His currency moves were to short the Indian rupee, long the aussie and south korean currencies. Rationale is India is going to be devo'd. They have 4.3 test kits per 1M people. South Korea got sold off badly when it first got there but they have it under control and currency will bounce. Aussie dollar will go up when China re-opens which is starting to happen.

                  I think the USD will shorten like it did in 2008/2010 in the next 3 months - get ready to grab that container of games..











                  Now that just earned a couple of paracetamol...Ouch!

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