Aussie dollar on the turn
Jul 30th 2008, 2:22 pm
#16
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Aussie dollar on the turn
what a rubbish article...
"The retreat comes days after the Melbourne lender shocked the markets by announcing a 90pc write-down on its £550m holdings of US mortgage debt, an admission that it AAA-rated securities are virtually worthless."
Yet, it fails to mention that NAB's total assets are over $500bn !!!
This is the equivalent of you or I losing a couple of grand in the casino....and it is being held up as evidence in an article entitled "australia faces worse crisis than usa" !!! heh heh....
"The retreat comes days after the Melbourne lender shocked the markets by announcing a 90pc write-down on its £550m holdings of US mortgage debt, an admission that it AAA-rated securities are virtually worthless."
Yet, it fails to mention that NAB's total assets are over $500bn !!!
This is the equivalent of you or I losing a couple of grand in the casino....and it is being held up as evidence in an article entitled "australia faces worse crisis than usa" !!! heh heh....
Like I said earlier - a slow news day.
Jul 30th 2008, 2:31 pm
#17
Forum Regular
Joined: Apr 2008
Posts: 158
Re: Aussie dollar on the turn
I think it will return to its average 2.42 ,the chances of the Australian
dollar becoming the new big thing in currencies is a joke
its just a matter of time Just look at the Kiwi its a joke
Australia has a massive empty Continent to fill before it is in the
same camp as the majors ,as thay drop interest rates the RBA & RBNZ
the A$dollars will a come tumbling doon
dollar becoming the new big thing in currencies is a joke
its just a matter of time Just look at the Kiwi its a joke
Australia has a massive empty Continent to fill before it is in the
same camp as the majors ,as thay drop interest rates the RBA & RBNZ
the A$dollars will a come tumbling doon
Last edited by Hotton; Jul 30th 2008 at 2:34 pm.
Jul 30th 2008, 3:49 pm
#18
Forum Regular
Joined: May 2008
Posts: 111
Re: Aussie dollar on the turn
The CEO of National Australia Bank said something interesting the other day about Australian property prices along the lines that, yes, property is very expensive in Australia but, unlike the US, there isn't an over supply of housing. To put it simply, too many houses were built in the US. This, combined with crazy lending to people who were guaranteed to default means the US is in a much more difficult situation. Strong immigration and the mining boom means many of the overseas pundits have got it wrong when they predict Australia will follow the US down the negative equity gurgler.
The fact is the Australian economy has been (and is) much better managed than the US one. Aus has a budget surplus around 2% of GDP while the US has a 3 % deficit which is more like 4% except they don't count their "war deficit". Talk about shonky book-keeping.
The fact is the Australian economy has been (and is) much better managed than the US one. Aus has a budget surplus around 2% of GDP while the US has a 3 % deficit which is more like 4% except they don't count their "war deficit". Talk about shonky book-keeping.
"The mortgage market is going to be a great market in this country for a long time. We've got population growth. We've got people who are always going to want to live in homes that they own. It's going to be a great market."
Jul 30th 2008, 4:38 pm
#19
Ping pong PoM
Joined: Aug 2006
Location: Melbourne
Posts: 1,537
Re: Aussie dollar on the turn
The mortgage market is going to be great, only if they've got money to lend to would-be mortagee's....
The financial market is a global one and, as such is subject to changes in the global economy.
Even Europe have a load less money to lend than they used to and the banks there dabbled a whole lot less than UK ones in the USA sub prime lending....
Australia can't immune from that, surely?
BTW today the $ is at 2.1 to £ so it's definitely on the up... whether is carries on is yet to be seen, but that's what the economists are predicting.
The financial market is a global one and, as such is subject to changes in the global economy.
Even Europe have a load less money to lend than they used to and the banks there dabbled a whole lot less than UK ones in the USA sub prime lending....
Australia can't immune from that, surely?
BTW today the $ is at 2.1 to £ so it's definitely on the up... whether is carries on is yet to be seen, but that's what the economists are predicting.
Jul 30th 2008, 8:09 pm
#20
Timelord
Joined: May 2006
Location: Lost in space...
Posts: 2,834
Re: Aussie dollar on the turn
Totally agree... Last weeks Manly Daily showed a 6.75% year on year drop in prices in Mona Vale on the Northern Beaches, data from RP Data... And I reckon that's just the beginning... 20%-30% to go...
Jul 30th 2008, 11:41 pm
#21
BE Enthusiast
Joined: Sep 2004
Location: London - but only until I can afford to move back to Sydney
Posts: 938
Re: Aussie dollar on the turn
Regarding the slowdown in demand from China after the olympics, I wouldn't bet on that. China has big infrastructural plans and they are swimming in money so the resources boom could go on for some time yet.
Jul 31st 2008, 12:04 am
#22
Banned
Joined: Nov 2002
Location: USA
Posts: 913
Re: Aussie dollar on the turn
Patience will be rewarded - taken from Bloomberg this morning. Just wait until post the Bejing olympics slowdown kicks in. Aussie is a little boat in a large ocean and can move quickly when the fundamentals turn.
Commodities Decline
The Australian dollar fell to the lowest in two weeks as Credit Suisse indexes showed traders added to bets for the RBA to reduce its benchmark by 25 basis points in the next 12 months, compared with 11 basis points yesterday.
The currency also weakened as the price of gold, the nation's third-most valuable commodity export, dropped the most in more than six weeks yesterday. Exports of raw materials contribute about 17 percent to Australia's economy.
``For commodity currencies, it appears the writing is on the wall for a sharp pull back,'' wrote London-based Stephen Koukoulas, head of global foreign exchange and fixed-income strategy at TD Securities Ltd., in a research note. ``A weaker commodities outlook will undermine support'' for the Aussie.
New Zealand's government bonds rose, pushing the yield on the 10-year note down 5 basis points to 6.13 percent. The price of the 6 percent security maturing in December 2017 climbed 0.368 to 99.054. A basis point is 0.01 percentage point.
Australian bonds advanced for a second day. The yield on the 10-year note fell 5 basis points to 6.40 percent. The price of the 5.25 percent security maturing in March 2019 gained 0.336, or A$3.36 per A$1,000 face amount, to 91.243.
Commodities Decline
The Australian dollar fell to the lowest in two weeks as Credit Suisse indexes showed traders added to bets for the RBA to reduce its benchmark by 25 basis points in the next 12 months, compared with 11 basis points yesterday.
The currency also weakened as the price of gold, the nation's third-most valuable commodity export, dropped the most in more than six weeks yesterday. Exports of raw materials contribute about 17 percent to Australia's economy.
``For commodity currencies, it appears the writing is on the wall for a sharp pull back,'' wrote London-based Stephen Koukoulas, head of global foreign exchange and fixed-income strategy at TD Securities Ltd., in a research note. ``A weaker commodities outlook will undermine support'' for the Aussie.
New Zealand's government bonds rose, pushing the yield on the 10-year note down 5 basis points to 6.13 percent. The price of the 6 percent security maturing in December 2017 climbed 0.368 to 99.054. A basis point is 0.01 percentage point.
Australian bonds advanced for a second day. The yield on the 10-year note fell 5 basis points to 6.40 percent. The price of the 5.25 percent security maturing in March 2019 gained 0.336, or A$3.36 per A$1,000 face amount, to 91.243.
Jul 31st 2008, 2:38 am
#23
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Aussie dollar on the turn
WA government has just approved a new, $1.6b iron-ore port near Geraldton.
Yadda, yadda.
Boom still a long way to go.
Jul 31st 2008, 2:52 am
#24
BE Forum Addict
Joined: Dec 2004
Posts: 3,038
Aussie dollar on the turn
Why is it that almost everything one buys in the shops has......somewhere............on it 'Made in China' ?
Jul 31st 2008, 3:10 am
#25
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: Aussie dollar on the turn
I for one am sick to death of *having* to buy cheap Chinese made goods (because nothing else seems to be made any more) which fall apart in some way, have instructions that don't relate to the product, don't do what they purport to do - and end up in the bin.
I don't think I'm the only one, either.
Jul 31st 2008, 3:43 am
#26
BE Forum Addict
Joined: Dec 2004
Posts: 3,038
Aussie dollar on the turn
..... and is generally crap.
I for one am sick to death of *having* to buy cheap Chinese made goods (because nothing else seems to be made any more) which fall apart in some way, have instructions that don't relate to the product, don't do what they purport to do - and end up in the bin.
I don't think I'm the only one, either.
I for one am sick to death of *having* to buy cheap Chinese made goods (because nothing else seems to be made any more) which fall apart in some way, have instructions that don't relate to the product, don't do what they purport to do - and end up in the bin.
I don't think I'm the only one, either.
They just don't fit a hunk of a chappie like me.
Jul 31st 2008, 3:53 am
#27
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Aussie dollar on the turn
This is the first negative story about the Sydney housing market I've seen in the Herald.
Sydney house prices take a dive
S
Jul 31st 2008, 4:10 am
#28
poole ,dorset . love it
Joined: Mar 2007
Posts: 1,281
Re: Aussie dollar on the turn
But i like you try to keep an optimistic outlook on the aussie economy ,but i have to i work in construction and we at the moment are really suffering ,i guess my income has dropped by 40% this year and with every single builder we work for got property unsold its only a matter of time before we are in the shite .
I know aussie has a thriving mining economy but obviously this really only effects the lucky few who are in it ,the cashed up employees of the mining sector arnt going to be the saving grace if the economy collapses due to tightening of money policies like what has happened in the uk .
The uk is now reliant on virtual cash buyers for property because people cant get mortgages ,if this happens in aussie the cashed up employees of the mining industry just wont be enough to kick start the whole merry go round again .
The mining industry at times really annoys me because all you seem to read is they cant get staff ,well i know heaps of people who wouldnt mind getting into mining including myself ,but cant get in because its a case of who you know and not what you know .
The lack of interest by mining companys in regards to training is beyond belief to me ,all they want is experience they dont want people who are eager to learn .
Australia is already a two tier economy annd thats not good for the country ,lets hope it changes soon .
Jul 31st 2008, 4:23 am
#29
Frequent Flyer Member
Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: Aussie dollar on the turn
I know aussie has a thriving mining economy but obviously this really only effects the lucky few who are in it ,the cashed up employees of the mining sector arnt going to be the saving grace if the economy collapses due to tightening of money policies like what has happened in the uk .
The mining boom is a great thing, and Australia is very lucky to be in the position it is. But the fact that the services sector is shrinking in both Qld and WA demonstrates that the revenues alone aren't enough to keep the wider economy going.
Jul 31st 2008, 4:34 am
#30
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Re: Aussie dollar on the turn
Hi Amazulu ,i have found this thread interesting .You tend to keep a more optimistic view of the australian economy which is good as i think now we are talking ourselves into a hole .
But i like you try to keep an optimistic outlook on the aussie economy ,but i have to i work in construction and we at the moment are really suffering ,i guess my income has dropped by 40% this year and with every single builder we work for got property unsold its only a matter of time before we are in the shite .
I know aussie has a thriving mining economy but obviously this really only effects the lucky few who are in it ,the cashed up employees of the mining sector arnt going to be the saving grace if the economy collapses due to tightening of money policies like what has happened in the uk .
The uk is now reliant on virtual cash buyers for property because people cant get mortgages ,if this happens in aussie the cashed up employees of the mining industry just wont be enough to kick start the whole merry go round again .
The mining industry at times really annoys me because all you seem to read is they cant get staff ,well i know heaps of people who wouldnt mind getting into mining including myself ,but cant get in because its a case of who you know and not what you know .
The lack of interest by mining companys in regards to training is beyond belief to me ,all they want is experience they dont want people who are eager to learn .
Australia is already a two tier economy annd thats not good for the country ,lets hope it changes soon .
But i like you try to keep an optimistic outlook on the aussie economy ,but i have to i work in construction and we at the moment are really suffering ,i guess my income has dropped by 40% this year and with every single builder we work for got property unsold its only a matter of time before we are in the shite .
I know aussie has a thriving mining economy but obviously this really only effects the lucky few who are in it ,the cashed up employees of the mining sector arnt going to be the saving grace if the economy collapses due to tightening of money policies like what has happened in the uk .
The uk is now reliant on virtual cash buyers for property because people cant get mortgages ,if this happens in aussie the cashed up employees of the mining industry just wont be enough to kick start the whole merry go round again .
The mining industry at times really annoys me because all you seem to read is they cant get staff ,well i know heaps of people who wouldnt mind getting into mining including myself ,but cant get in because its a case of who you know and not what you know .
The lack of interest by mining companys in regards to training is beyond belief to me ,all they want is experience they dont want people who are eager to learn .
Australia is already a two tier economy annd thats not good for the country ,lets hope it changes soon .
I guess the house building industry is suffering - and that's a bummer if you're affected. The commercial building industry - in WA and Qld at least - is still booming though. There are at least 20 apartment blocks being built in central Perth right now, and heaps more are planned. Same for office blocks - the biggest one ever to be built in WA is starting soon. Add to this the new stadia, waterfront, airport, museum, roads, container port, rail etc.....
House building may be in a slump but it will come back sooner or later. No consolation if you are hurting right now, but great for the future.