eugene43

I would never of guessed LOL

aliread

mmmm WHY !

DownUnderPaddy

"Economists are now tipping the Australian dollar will reach parity with the greenback in the next three to six months"

http://www.theage.com.au/business/go...0109-lzsn.html

Centurion

Hurray !

aliread

What about with the pound

bcworld

I'm sure 3 - 6 months ago they said A$ would be worth US$1.10.

MrCro

it's all speculation - US job data shocked on Friday, chance of major double dip recession.

only time will tell but my bet is A$ due a few shocks!

ABCDiamond

They did

koalakim

They keep saying that to talk the A$ up...something they are very good at doing.

Having been watching the currency markets the last few months it seems to me that no matter how well the A$ is doing, the minute the US gets some good data they all flock back to that...safe haven and all that.

It will be interesting to see how Aus does once all the stimulus is out of the way. The FTHBG is now quite small for 2nd hand properties, the 50% tax rebate for small business has just ended and I'm sure countless other stuff so purchases might fall from now on etc.

The bad weather isn't good for the pound as no one can get out to spend, so will be interesting to see what the pound does this week. Well, no one can get to work so the whole countries productivity must have ceased!

swigski

A view backed up in this article:

http://www.smh.com.au/business/call-...0108-lyzc.html

I suppose some people will once again say that Australia is in a different position because of this and that but without a stimulus repeat, a further recession would surely involve Aus?

mulben

Devaluing an already shaky pound is not good news- do we pull out now and wait for the devaluation (might be the only way to profit on the pound) The Telegraph do like gloom and doom , still I hope they are wrong

77hil

Seems to be only in the Australian media that they write articles about what "will" happen. They have some great crystal balls over there!

While I can see the exchange rate getting worse in the near term, I can't see it lasting in the long term as there comes a point when the exchange rate has no place in reality.

For example, if there is parity between the AU$ and the US$ how can the PS3 game "Army of Two: The 40th Day" cost $56 in the US and $99 in Australia! Local business are really going to suffer if this continues. Why buy anything from an Australian retailer when you can get it for half the price abroad?

I just cant see this exchange rate lasting long term.

mulben

I think you will find that the article quoted by swigski is reprint from the London Telegraph

77hil

Ah. Then my sincere apologies. Another reason to leave the UK then! The Telegraph

Centurion

I'm guessing you don't seriously need that explained.