Australian Dollar to Drop Dramatically Soon!

[moyjos]

I import and am liking 1.05 but I agree 1.40-1.50 would be not good for our exports. It kind of goes in circles..if our exports (coal steel etc) is more expensive then the companies that use that "stuff"have to put their prices up anyway, so the importer's price is higher (in US$)
I have seen this with my stuff. I import flyscreen mesh and the price of the raw materials has gone up so my $US price has gone up 10% over the last 6 months.

 

[Ausprop]

I import and am liking 1.05 but I agree 1.40-1.50 would be not good for our exports. It kind of goes in circles..if our exports (coal steel etc) is more expensive then the companies that use that "stuff"have to put their prices up anyway, so the importer's price is higher (in US$)
I have seen this with my stuff. I import flyscreen mesh and the price of the raw materials has gone up so my $US price has gone up 10% over the last 6 months.

We dont really export much that requires jobs. mining is more capital intensive than labour intensive and inputs to finished materials is only fractional. you could theoretically have the dollar at 3:1 and cut the working week to 20 hours. If anyone swaps you something for more than it is worth it makes sense to take it. anyone that disagrees is welcome to come work for me, I will happily devalue their currency of choice and put them to work for 60 hours a week

 

[Deltaberry]

Nah except tourism and education, which would conveniently wipe out the capital cities and resort places along the coasts (not like they haven't gone bankrupt already). I'd be really scared if I was a worker/businessman/investor in Gold Coast now

 

[HomeBuyAU]

here we go....

 

[Monopoly]

here we go....

Are you serious? It dropped from about 1.09 to 1.07 over 2 days and already you're boarding the roller coaster???

Of course it will go down, it can't stay up so high indefinitely, but I'd hardly be queuing up at the ticket box just yet!!!

 

[kum yin lau]

Hi Strannik, do you remember how long ago it was we're all getting rather red in face about the AUD going to 0.38?

Why would anyone want to put his 'prediction' out there as your guess is as good as mine?

KY

 

[Rockstar]

Hi Strannik, do you remember how long ago it was we're all getting rather red in face about the AUD going to 0.38?

Why would anyone want to put his 'prediction' out there as your guess is as good as mine?

KY

Here it is KY http://www.somersoft.com/forums/showthread.php?t=49850&highlight=recourse

How far from the truth was his predictions. No wonder he disappeared. Saying that, like you say, none of us really have much of a clue when you look back in the old threads.
There's a good link in there on page 1 to Ian Somers' thread "Building Wealth in Uncertain Times"

 

[_Kaos_]

Australian dollar will go up and down over the next 50 years, you heard it here first!

 

[cu@thetop]

Australian dollar will go up and down over the next 50 years, you heard it here first!

But it will stop after 50 years? How u know this?

 

[Token Funder]

I have heard from some good sources that the dollar will drop dramatically shortly. Take it or leave it but remember I told you!

Define "dramatically" and "shortly".

here we go....

So you soon is a week or so and dramatically is a couple of cents?

 

[AlmostBob]

Australian dollar will go up and down over the next 50 years, you heard it here first!

But it will stop after 50 years? How u know this?

after 50 years, it will stop going up & down, and begin to move down and up

 

[Strannik]

Hi Strannik, do you remember how long ago it was we're all getting rather red in face about the AUD going to 0.38?

Why would anyone want to put his 'prediction' out there as your guess is as good as mine?

KY

you sure you aren't mistaking me with someone? quite frankly I don't recall participating in the discussion last time, but knowing me i might have put a line or two like i did in this thread.

but yeah you are right, anyone's guess is just as good as mine or yours

 

[HomeBuyAU]

1.6 ... yeah baby!

 

[grossreal]

1.15 I think very soon.
I see the dollar going up to these levels but for me thats not a major issue
what is a major issue is that our dollar may well be worth a higher amount but we are still selling the farm
so our land is still very cheap compared to the rest of the world
our dollar is high against the US so good to buy US property but our land here is cheap to the rest of the world and anyone can buy it and they are
not alot of point having a high dollar but no land
I would love to see a graph that plotted the rise in the aust dollar against the US dollar project that at the same growth with a projection of say 2 years using the same pasted growth
and put next to that the amount of land bought in the last 12 months and project that at the same rates
ad you will see that the buy up rate will well out strip the dollar rise but there is not alot of debate about the buy up rates

 

[tubs]

OK, at least I can make my prediction public.

$1.20 and next interest rate move DOWN

 

[Sunfish]

OK, at least I can make my prediction public.

$1.20 and next interest rate move DOWN

There's some logic to that.

 

[bene313]

Do the RBA take the dollar into consideration as a monetary policy tool?

Inflation is still on the charge. I can't see IR going down...

 

[BayView]

Do the RBA take the dollar into consideration as a monetary policy tool?

Inflation is still on the charge. I can't see IR going down...

It's interesting how inflation is still charging ahead apparently, yet the retail sector across the board is absolutely stuffed.

It'll be interesting to see the figures on this Nationally at the end of this quarter.

 

[Sunfish]

Do the RBA take the dollar into consideration as a monetary policy tool?

Inflation is still on the charge. I can't see IR going down...

Prolly not directly but the high dollar adversely effects employment and I think that is in their charter.

 

[Ausprop]

it keeps oil price down and indeed most retail products. the increased cost of raw materials is immaterial to the retail value of a product, whih is why a higher dollar equates to increased living standards, lower inflation and lower interest rates as a result... tho usually the dollar is high because IRs are too high to start with.