AUD

[basilio]

Seems as if the AUD will continue to rise with the pressure of Chinas demand for our iron ore.
Is the the opportunity for foreign exchange play ?

China's demand for steel may boost Aussie dollar to 80 US cents, analysts predict

The Australian dollar is expected to keep surging as long as China's hunger for steel remains insatiable and the US struggles to control its COVID-19 outbreak, according to currency experts.

www.abc.net.au

 

[mullokintyre]

Seems as if the AUD will continue to rise with the pressure of Chinas demand for our iron ore.
Is the the opportunity for foreign exchange play ?

China's demand for steel may boost Aussie dollar to 80 US cents, analysts predict

The Australian dollar is expected to keep surging as long as China's hunger for steel remains insatiable and the US struggles to control its COVID-19 outbreak, according to currency experts.

www.abc.net.au

How quickly sentiment can change,
AUD vs USD peg now below 73 handle.
Good for AUS exporters, not so for those importing..
This will just add a little bit more to the inflationary pressures.
AS usual, the RBA living in a dream world, not expecting inflation til 2023 or thereabouts.
Mick

 

[mullokintyre]

I wonder if our RBA head is talking to or even listening to the NZ equivalent.
According to ABC News
In a statement, the Reserve Bank of New Zealand said its Monetary Policy Committee would keep the "current stimulatory level of monetary settings", meaning the official cash rate remains at 0.25 per cent.

"Today’s decision was made in the context of the Government’s imposition of Level 4 COVID restrictions on activity across New Zealand," it explained, meaning the rate is likely to rise in the near future if the outbreak can be contained.
So long as the outbreak is contained, the first rise in the cash rate since 2014 will happen at next month's meeting, according to ANZ New Zealand's chief economist Sharon Zollner.

"COVID cases, that's the only data that matters over the next week or two," she said.

"If we do manage to get on top of this — touch wood — then they'll pick up.

"It seems pretty clear that if it hadn't been for this curveball, then our expectation that the Reserve Bank would have become considerably more hawkish was indeed correct."

Most economists predicted a rate rise due to the bank hitting its targets for employment and inflation — something Australia's central bank has consistently failed to do.

Its bad enough that they beat us in Rugby, now they are leading us in the economic handle pulling.
Mick

 

[StockyGuy]

How did I miss going long term long on AUD/USD when it the 50s March last year? Even low 60s. Hindsight is 20/20 (for 2020) and all that.

 

[qldfrog]

long term wise, it seems we may have to wait a while before buying like crazy on amazon and ebay, and good for gold in aud.
5c down out of 75c sonearly down 7% in less than a month and reaching/breaking? dangerous support level of the 2020 ...

 

[mullokintyre]

Wonder what will happen when the RBA raises rates next week?
Will we get 25 Bp rise or 40 BP, or even the whole 50 BP?
Mick