Exchange rate AUD Vs GBP £1 buys $1.83
#182
Re: Exchange rate AUD Vs GBP £1 buys $1.83
All in the short term.
Which points up two things. First that the money markets are made up of sheep crossed with goldfish who think that 0.1% difference in unemployment actually feeds through the noise to change inflation noticeably. And second that if they had done a smarter job with the control of the interest rates, etc. since 2007 they could have prevented the decimation of Australian manufacturing by not allowing the exchange rate to get so out of control in the first place.
#183
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Exchange rate AUD Vs GBP £1 buys $1.83
The Australian unemployment rate fell a few days ago, but less than some people thought, thus the chance of interest rate cut in the near term is assessed as lower, so the Australian currency is a better bet for return on their money. So the Oz dollar does better.
All in the short term.
Which points up two things. First that the money markets are made up of sheep crossed with goldfish who think that 0.1% difference in unemployment actually feeds through the noise to change inflation noticeably. And second that if they had done a smarter job with the control of the interest rates, etc. since 2007 they could have prevented the decimation of Australian manufacturing by not allowing the exchange rate to get so out of control in the first place.
All in the short term.
Which points up two things. First that the money markets are made up of sheep crossed with goldfish who think that 0.1% difference in unemployment actually feeds through the noise to change inflation noticeably. And second that if they had done a smarter job with the control of the interest rates, etc. since 2007 they could have prevented the decimation of Australian manufacturing by not allowing the exchange rate to get so out of control in the first place.
#184
Re: Exchange rate AUD Vs GBP £1 buys $1.83
If you a dumb you just hold up your hands and say "well nothing we can do".
If you are smart you concentrate on automation and forcing business to improve it's capital productivity gains to match the labour productivity gains - and then you can be germany.
Wages only matter when wages are a significant percentage of your costs.
#185
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Exchange rate AUD Vs GBP £1 buys $1.83
Kind of depends on how you address the threat.
If you a dumb you just hold up your hands and say "well nothing we can do".
If you are smart you concentrate on automation and forcing business to improve it's capital productivity gains to match the labour productivity gains - and then you can be germany.
Wages only matter when wages are a significant percentage of your costs.
If you a dumb you just hold up your hands and say "well nothing we can do".
If you are smart you concentrate on automation and forcing business to improve it's capital productivity gains to match the labour productivity gains - and then you can be germany.
Wages only matter when wages are a significant percentage of your costs.
#186
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Joined: Oct 2006
Location: Nowhere - I'm a travelling (wo)man!
Posts: 2,362
Re: Exchange rate AUD Vs GBP £1 buys $1.83
Right you lot. We'll need to transfer money from the UK to Australia at some point before the end of this year. When will the optimum time be and what exchange rate will we get if we do it then?
#187
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Joined: Jun 2007
Location: The "Gong"
Posts: 433
Re: Exchange rate AUD Vs GBP £1 buys $1.83
Better than 3 months ago
Miles better than 12 months ago.
Better than next month ..... That's the million dollar question
#188
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Exchange rate AUD Vs GBP £1 buys $1.83
#189
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Exchange rate AUD Vs GBP £1 buys $1.83
What happen to the dollar? I thought it was supposed to plummet on the back of an interest rate cut?
#190
Re: Exchange rate AUD Vs GBP £1 buys $1.83
"Weak US trade data has sent the Australian dollar even higher against the greenback, adding to the Reserve Bank’s woes after yesterday’s interest rate cut.
The currency would normally be expected to fall on a rate cut, which is what the RBA wants, but it instead climbed as traders bet the current easing cycle has come to an end."
#191
Re: Exchange rate AUD Vs GBP £1 buys $1.83
I wonder what the UK election result will do to it tomorrow?
If Labour get in, the city won't like it - because the debt won't get paid down as fast.
However, if the Tories get in, the city won't like it because the referendum on EU membership will loom.
So in theory they should have priced in disappointment, but it doesn't look like they have.
#192
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Joined: Jun 2007
Location: The "Gong"
Posts: 433
Re: Exchange rate AUD Vs GBP £1 buys $1.83
Ah, you don't just factor in events in the 2 countries for which the exchange rate relates to sometimes:
"Weak US trade data has sent the Australian dollar even higher against the greenback, adding to the Reserve Bank’s woes after yesterday’s interest rate cut.
The currency would normally be expected to fall on a rate cut, which is what the RBA wants, but it instead climbed as traders bet the current easing cycle has come to an end."
"Weak US trade data has sent the Australian dollar even higher against the greenback, adding to the Reserve Bank’s woes after yesterday’s interest rate cut.
The currency would normally be expected to fall on a rate cut, which is what the RBA wants, but it instead climbed as traders bet the current easing cycle has come to an end."
#193
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Exchange rate AUD Vs GBP £1 buys $1.83
Ah, you don't just factor in events in the 2 countries for which the exchange rate relates to sometimes:
"Weak US trade data has sent the Australian dollar even higher against the greenback, adding to the Reserve Bank’s woes after yesterday’s interest rate cut.
The currency would normally be expected to fall on a rate cut, which is what the RBA wants, but it instead climbed as traders bet the current easing cycle has come to an end."
"Weak US trade data has sent the Australian dollar even higher against the greenback, adding to the Reserve Bank’s woes after yesterday’s interest rate cut.
The currency would normally be expected to fall on a rate cut, which is what the RBA wants, but it instead climbed as traders bet the current easing cycle has come to an end."
#194
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Exchange rate AUD Vs GBP £1 buys $1.83
Buy in the rumour, sell on the news.
I wonder what the UK election result will do to it tomorrow?
If Labour get in, the city won't like it - because the debt won't get paid down as fast.
However, if the Tories get in, the city won't like it because the referendum on EU membership will loom.
So in theory they should have priced in disappointment, but it doesn't look like they have.
I wonder what the UK election result will do to it tomorrow?
If Labour get in, the city won't like it - because the debt won't get paid down as fast.
However, if the Tories get in, the city won't like it because the referendum on EU membership will loom.
So in theory they should have priced in disappointment, but it doesn't look like they have.
#195
Last resort... format c:/
Joined: Mar 2012
Location: Singapore to Surfers Paradise to... Tenerife... to Gran Canaria!
Posts: 1,609
Re: Exchange rate AUD Vs GBP £1 buys $1.83
What is worrying is the level of debt in Australia as well as the state of the economy in general which does not look like it is set to improve in the near future. This will in turn hurt the AUD as it will be a sign that even with record-low interest rates, the RBA still has work to do whilst it is running out of tools (even a further cut will just raise anxiety if the results are not as expected).