Aussie $$ set to fall

[the_hawk*]

Following on from other events like the fall in interest rates, high unemployment and Australians high debt.

Rumors within the investment community believe the AU$ is about to fall.

I personally believe its about to trip over and fall on its sword.

So many will say that's just being negative, I say it will happen and it will be sooner than most think 1 to 6 months and the $$ will be falling.

The net effect of this will be that prices will rocket up as so much in now imported.

[lyndal1838]

stop buying imported things and it won't affect you

Easier said than done seeing most things are imported now.  We are no longer self supporting even in food.

[the_hawk*]

Oh dear look at it go

AUD / USD 0.99815 -0.21

[lakeland27]

if you want to buy 'made in australia' this is a good thing, if it continues down (doubtful)

the country will boom in areas outside the mining sector.  its more likely a bit of profit taking from currency traders,

[the_hawk*]

No its not profit taking, the traders are shorting the $$ knowing its on its way down.

[lakeland27]

No its not profit taking, the traders are shorting the $$ knowing its on its way down.

how do you really know ? the gossip isn't always right, its often part of the plan.

[the_hawk*]

The market is how I make my money 🙂 and I have to be right more than I am wrong ]:)

[lakeland27]

dont go jumping out of any windows then 🙂

[monman12]

LL I have to admit to indulging in  a little financial speculation with my SMSF share portfolio, indirectly. The stockbroker I have known for over 15 years started option trading on my behalf a couple of years ago, it is mind twisting:- ASX Ratio Market, equity options, Puts, Calls, buys, sells,  :European options & American options. I  have so far received positive returns about every 6-8 weeks.

Confession over.

[just_me_karen]

It's not all that hard to understand, hawk. After all, the reserve bank has been decreasing interest rates to reduce the demand for our dollar. However, because our economy has been well managed in comparison to most other countries, the demand was still high. How many other countries have close to 0% interest rates? If you look at that, you'll understand why there is a big demand for the Australian dollar and you won't have to rely on copying economic forecasters' opinions lol

[monman12]

JMK: "It's not all that hard to understand, hawk. After all, the reserve bank has been decreasing interest rates to reduce the demand for our dollar."  ??????

I find that hard to understand, as I thought the RBA cash rate was varied to tune the economy, not the dollar, and the drop in exchange rate (USD/AUD) was purely because the USD rose,

"As an example, when inflation is within the target rate and the economy shows signs of slowing, the RBA might reduce the Official Interest Rate to encourage spending. Or, if inflation creeps above 3%, the RBA may take action to slow the economy down by raising the Official Interest Rate."

If you noticed JMK when the RBA lowered the interests rate recently the USD/AUD rate hardly moved. However, the US dollar's surge came after a report showed that US claims for unemployment benefits last week dropped to their lowest level in over five years.