1.93's A$ to the Pound!!!
May 20th 2010, 6:30 pm
#1621
Forum Regular
Joined: Mar 2008
Location: Ashby, sunny Perth
Posts: 50
Re: 1.93's A$ to the Pound!!!
May explain whats going on,
Dated 20.5.2010
SPOOKED foreign investors are hurling the Australia dollar over a cliff as they search for a safer nation to park their cash.
In one of the biggest five-day slides in its history, the dollar fell almost 8 per cent to US83c and is now a staggering 12 per cent off its April highs, causing headaches for importers and travellers heading overseas.
For consumers, the drop will push up the prices of imported electrical goods and cars.
The Aussie dollar is considered by the global investment community as a risky option in times of economic uncertainty due to the nation's leverage to the commodity prices and and concerns about the mining super profits tax.
It is even falling in value this week against the troubled euro, which is itself under severe pressure courtesy of the European sovereign debt crisis.
A cocktail of international and local events had fuelled the fall and it was likely to remain under pressure for some time.
"There definitely has been a tremendous amount of offshore focus on the potential impact of the resource super tax by some longer term investors in the Australian dollar and we are seeing some signs of softening in China," Westpac chief currency strategist Robert Rennie said.
"I think those factors, on top of the ongoing concerns about capital flight from Asia that's beginning to show up, and the potential impact of Greece and Europe funding, all collided."
Other analysts said investors, who previously bought the dollar because it delivered a higher interest rate yield compared with other currencies, had deserted the currency.
Commsec economist Savanth Sebastian said: "Global fund managers are exiting in a big way the carry trades that they took up mid-way through last year."
Moves by Germany's regulator to ban naked short selling has kept European share markets in a state of panic, although in early trade last night they had edged into positive territory.
From an exchange rate point of view it sounds good for us
From an Australian economy view, not so good
Still, long may it continue!!!
Dated 20.5.2010
SPOOKED foreign investors are hurling the Australia dollar over a cliff as they search for a safer nation to park their cash.
In one of the biggest five-day slides in its history, the dollar fell almost 8 per cent to US83c and is now a staggering 12 per cent off its April highs, causing headaches for importers and travellers heading overseas.
For consumers, the drop will push up the prices of imported electrical goods and cars.
The Aussie dollar is considered by the global investment community as a risky option in times of economic uncertainty due to the nation's leverage to the commodity prices and and concerns about the mining super profits tax.
It is even falling in value this week against the troubled euro, which is itself under severe pressure courtesy of the European sovereign debt crisis.
A cocktail of international and local events had fuelled the fall and it was likely to remain under pressure for some time.
"There definitely has been a tremendous amount of offshore focus on the potential impact of the resource super tax by some longer term investors in the Australian dollar and we are seeing some signs of softening in China," Westpac chief currency strategist Robert Rennie said.
"I think those factors, on top of the ongoing concerns about capital flight from Asia that's beginning to show up, and the potential impact of Greece and Europe funding, all collided."
Other analysts said investors, who previously bought the dollar because it delivered a higher interest rate yield compared with other currencies, had deserted the currency.
Commsec economist Savanth Sebastian said: "Global fund managers are exiting in a big way the carry trades that they took up mid-way through last year."
Moves by Germany's regulator to ban naked short selling has kept European share markets in a state of panic, although in early trade last night they had edged into positive territory.
From an exchange rate point of view it sounds good for us
From an Australian economy view, not so good
Still, long may it continue!!!
May 20th 2010, 8:19 pm
#1622
BE Enthusiast
Joined: Jun 2007
Location: Woodvale WA
Posts: 310
Re: 1.93's A$ to the Pound!!!
Again for purely selfish reasons ive been watching the pound slide for a while now and am delighted with the weeks events especially as we prepare for the big cash conversion.....
What goes around comes around in most things in life i guess
The path of the righteous man is beset on all sides by the iniquities of the selfish and the tyranny of evil men. Blessed is he, who in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who would attempt to poison and destroy my brothers. And you will know my name is the Lord when I lay my vengeance upon thee.
What goes around comes around in most things in life i guess
The path of the righteous man is beset on all sides by the iniquities of the selfish and the tyranny of evil men. Blessed is he, who in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who would attempt to poison and destroy my brothers. And you will know my name is the Lord when I lay my vengeance upon thee.
May 20th 2010, 9:48 pm
#1623
BE Enthusiast
Thread Starter
Joined: Jun 2008
Posts: 730
Re: 1.93's A$ to the Pound!!!
1.76's now - seems unrelentless!
so nice to see it going other way as drastically as it sank!
To all those predicting Aussie parity with the US$ and £1.50 to the £
We're coming home, we're coming home, we're coming, pommy pounds are coming home!
Shame for all those greedy people holding dollars waiting to get 1.50 rate.
so nice to see it going other way as drastically as it sank!
To all those predicting Aussie parity with the US$ and £1.50 to the £
We're coming home, we're coming home, we're coming, pommy pounds are coming home!
Shame for all those greedy people holding dollars waiting to get 1.50 rate.
May 20th 2010, 9:55 pm
#1624
BE Enthusiast
Joined: Sep 2008
Location: newbury
Posts: 943
Re: 1.93's A$ to the Pound!!!
Again for purely selfish reasons ive been watching the pound slide for a while now and am delighted with the weeks events especially as we prepare for the big cash conversion.....
What goes around comes around in most things in life i guess
The path of the righteous man is beset on all sides by the iniquities of the selfish and the tyranny of evil men. Blessed is he, who in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who would attempt to poison and destroy my brothers. And you will know my name is the Lord when I lay my vengeance upon thee.
What goes around comes around in most things in life i guess
The path of the righteous man is beset on all sides by the iniquities of the selfish and the tyranny of evil men. Blessed is he, who in the name of charity and good will, shepherds the weak through the valley of darkness, for he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who would attempt to poison and destroy my brothers. And you will know my name is the Lord when I lay my vengeance upon thee.
May 20th 2010, 10:06 pm
#1625
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
The resources sector will be making even more money therefore driving further investment - despite mining tax - and the overall economy. How is that a bad thing?
May 20th 2010, 10:10 pm
#1626
Forum Regular
Joined: Aug 2007
Location: UK again
Posts: 219
Re: 1.93's A$ to the Pound!!!
Double fanastic for me as I transfer currency pegged to the USD. Had this horrible feelling it would be back up 90 US cents when I woke this morning, recent 90 cents has been killing me. Well this has put me in a good mood for the rest of the day.
Hope it last until at least I have transfered my next mega Tafe bill in June.
Hope it last until at least I have transfered my next mega Tafe bill in June.
May 20th 2010, 10:12 pm
#1627
Guest
Posts: n/a
Re: 1.93's A$ to the Pound!!!
Tourism has hits its lowest levels for 34 years due to the value of the A$ having risen so high. The hope in many quarters is that the A$ returns to more normal levels, and the tourism economy returns back to normal.
May 20th 2010, 10:13 pm
#1628
Forum Regular
Joined: Aug 2007
Location: UK again
Posts: 219
Re: 1.93's A$ to the Pound!!!
I agree, it's the over strong AUD that was going to do the damage to export industry, and that's not just mining.
May 20th 2010, 10:37 pm
#1629
BE Forum Addict
Joined: Feb 2008
Location: Hope Island, Gold Coast
Posts: 1,920
Re: 1.93's A$ to the Pound!!!
Right, I've now covered all my short term AUD needs, hoping for further AUD weakness so I can move my real savings, but not so much I loose my job (with an investment bank 
)
)
May 20th 2010, 10:59 pm
#1630
BE Enthusiast
Joined: Jul 2009
Location: Sydney
Posts: 313
Re: 1.93's A$ to the Pound!!!
We moved 3 weeks ago and at all times transferred the bare minimum. Transferred £3000 last week. Could have got about $200 extra if we'd have done it now. Ah well.
Total idiots that thought it was just going to keep going down. Often seemed to be the same people that hate Australia and want to leave. Negative fix in mind set maybe. Nothing continually goes down forever.
Total idiots that thought it was just going to keep going down. Often seemed to be the same people that hate Australia and want to leave. Negative fix in mind set maybe. Nothing continually goes down forever.
May 20th 2010, 11:17 pm
#1631
BE Enthusiast
Joined: May 2008
Location: NSW, Australia
Posts: 376
Re: 1.93's A$ to the Pound!!!
We had just transferred the proceeds off our UK house sale a few days ago. 
Pleased to see the rate is improving but a bit late for me!
Charlie
Pleased to see the rate is improving but a bit late for me!
Charlie
May 20th 2010, 11:18 pm
#1632
Gutter Gob!!
Joined: Feb 2005
Location: Perth
Posts: 13,098
Re: 1.93's A$ to the Pound!!!
I am beyond excited!!!
May 20th 2010, 11:45 pm
#1633
BE Enthusiast
Joined: Jul 2008
Posts: 823
Re: 1.93's A$ to the Pound!!!
Get your trades in before the Euro mess is sorted out, as soon as that's over the dollar will climb again
May 20th 2010, 11:48 pm
#1634
(It's not my real name)
Joined: Sep 2002
Location: Ilukapool. WA
Posts: 12,467
Re: 1.93's A$ to the Pound!!!
Absolutely, great news for Aussie exporters. Great news for me too as my trading account in in USD and I've just made a load of money for doing nothing.
May 21st 2010, 12:03 am
#1635
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: 1.93's A$ to the Pound!!!
Great stuff.