The Australian dollar is going into hibernation, and it's because of interest rates and commodity prices
1 year, 4 months ago

The Australian dollar is going into hibernation, and it's because of interest rates and commodity prices

ABC  

Fashion is a fleeting phenomenon. And our interest rates remained much higher than the rest of the developed world, which also attracted vast amounts of global capital seeking out a decent return. Our relatively lower interest rates will weigh on the Australian dollar as speculative money looks to the US and Europe for better returns. Why a fall in the Australian dollar may signal good news for mortgage-holders Photo shows auction sign out from of two storey home The Reserve Bank's mission to bring inflation down to its target range of between 2 and 3 per cent appears to be on track, but how confident of this can we be? Only two things can save it from a slow trip to the 50s; a recession in the US and Europe, and hence lower interest rates there, or a sudden bounce in commodity prices.

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History of this topic

Dollar firms as US rates outlook dominates
1 day, 7 hours ago

Dollar firms as US rates outlook dominates

Live Mint  

By Rae Wee SINGORE, - The dollar was on the front foot on Tuesday as the prospect of higher-for-longer U.S. interest rates remained top of investors' minds, leaving other currencies struggling near milestone lows. The Bank of Japan last week kept rates on hold and stayed vague on when it could next raise rates, an outcome which was in stark …

US dollar and bitcoin advance spurred by Trump tariff expectations
1 month, 1 week ago

US dollar and bitcoin advance spurred by Trump tariff expectations

Live Mint  

* Dollar index rises to 6-1/2-month high * Bitcoin hits record high on Trump tariff promise * Euro sinks to lowest since November 2023 By Chibuike Oguh and Harry Robertson NEW YORK/LONDON, - The U.S. dollar rose to a 6-1/2-month high against major peers on Tuesday, while bitcoin pared gains after earlier hitting a record high amid expectations of inflationary …

US dollar and bitcoin advance spurred by Trump tariff expectations
1 month, 1 week ago

US dollar and bitcoin advance spurred by Trump tariff expectations

Live Mint  

By Chibuike Oguh and Harry Robertson NEW YORK/LONDON -The U.S. dollar rose to a 6-1/2-month high against major peers on Tuesday, while bitcoin pared gains after earlier hitting a record high amid expectations of inflationary import tariffs from Republican President-elect Donald Trump Bitcoin gained 1.88% to $89,683.00, slightly below a new all-time peak of $89,982. "It's still an extension of …

PETER VAN ONSELEN: Which of these statements about the Australian economy is true? 1) Australia has won the war on inflation 2) Interest rates are too high 3) The country is run by a bunch of muppets
3 months ago

PETER VAN ONSELEN: Which of these statements about the Australian economy is true? 1) Australia has won the war on inflation 2) Interest rates are too high 3) The country is run by a bunch of muppets

Daily Mail  

I used to enjoy a good muppet show as a kid, but the muppet show we'll see tomorrow when the latest inflation data gets revealed will be far less edifying. RBA Governor Michele Bullock will see through tomorrow's headline inflation figure And that underlying figure will be higher than the top end of the Reserve Bank's target range. The underlying …

Australian dollar tumbles on fears of Chinese economic slowdown
5 months ago

Australian dollar tumbles on fears of Chinese economic slowdown

ABC  

After climbing to a six-month high two weeks ago, the Australian dollar has since tumbled, as fears mount about the economic health of our largest trading partner, China. "Until the Chinese government makes a material stimulus, and puts some actual money behind this idea of recovery in the property market, the iron ore price is going to remain subdued," Bell …

The good news is the Australian economy is about to turn up. Here's why
5 months, 4 weeks ago

The good news is the Australian economy is about to turn up. Here's why

ABC  

Right now things feel awful. Inflation was going to be 3.9 per cent, not the present 3.6 per cent and headed down, and the Reserve Bank's cash rate was going to climb two times in the second half of 2023 from 4.1 per cent to 4.5 per cent. Back in mid-2023, when asked about the probability of a recession in …

I'm a finance expert: Here are five things Aussies can do to get rich in 2024
1 year ago

I'm a finance expert: Here are five things Aussies can do to get rich in 2024

Daily Mail  

Australians can still make money in 2024 despite the Reserve Bank's aggressive interest rate rises and fears of a recession. Despite the gloom, Finder investment analyst Kylie Purcell said next year offered possibilities that didn't require taking huge risks during a cost of living crisis. Despite the gloom, Finder investment analyst Kylie Purcell said next year offered possibilities that didn't …

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain
1 year, 9 months ago

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain

ABC  

What happens on the other side of trouble? The National Accounts, which also measure inflation with what's called the GDP "price deflator", has the cost of living rising at 9.1 per cent. AMP senior economist Diana Mousina puts the "recession probability in the next two years as high, around 40 per cent". "That's almost half the 4.7 per cent annual …

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it
1 year, 10 months ago

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it

ABC  

Higher prices, that is. The Reserve Bank summed this up in this week's Monetary Policy Decision: "Global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy." "There's no doubt that corporations have taken advantage of the supply chain problems and the desperation of consumers …

Australia has a problem with inflation, and that likely means more interest rate hikes to come
2 years, 1 month ago

Australia has a problem with inflation, and that likely means more interest rate hikes to come

ABC  

Australia has a problem with inflation. It's a judgement call The Reserve Bank's inflation fighting job would be a heck of a lot easier if there wasn't such a time lag between cause and effect — that is, raising interest rates and seeing prices come down. But the Reserve Bank's key objective of lowering inflation back to the target range …

Australian dollar sinks to 29-month low on 'rising risk' of global recession, ASX drops 1.4 per cent
2 years, 2 months ago

Australian dollar sinks to 29-month low on 'rising risk' of global recession, ASX drops 1.4 per cent

ABC  

Australian shares have fallen significantly, tracking heavy losses on Wall Street as worries about higher interest rates and a potential recession in the United States hurt investor sentiment. Key points: The Australian dollar peaked at 76.6 US cents in April It has since dropped 17 per cent as global recession fears mount The US Fed is tipped to lift interest …

The Aussie dollar is dropping against the US currency, but it’s not all bad news
2 years, 2 months ago

The Aussie dollar is dropping against the US currency, but it’s not all bad news

ABC  

Paul O'Brien's costs are rising and it's not just supply chain issues, shipping delays and increasing inflation that we're all becoming accustomed to that is the cause. "It's been a case of all systems go for the US dollar," said Westpac's head of a foreign exchange strategy, Richard Franulovich. "The US dollar has been strong across the board this year …

Dollar firm as US Fed meeting and growth risks dominate
2 years, 5 months ago

Dollar firm as US Fed meeting and growth risks dominate

Live Mint  

The dollar was on a firm footing on Monday, as traders brace for a sharp U.S. interest rate hike this week and look for safety as data points to a weakening global economy. "Market reaction will turn on how hawkish Chair Powell sounds with his determination to reduce inflation in the face of slowing growth," said National Australia Bank currency …

As experts frighten the living daylights out of everyone about interest rates, here are five reasons they won't rise as high as predicted
2 years, 5 months ago

As experts frighten the living daylights out of everyone about interest rates, here are five reasons they won't rise as high as predicted

ABC  

Surging costs for everyday grocery items and fresh food, exorbitant prices for fuel and, on top of everything, a series of punishing interest rate hikes from the Reserve Bank adding hundreds of dollars a month to the cost of an average mortgage. A few weeks back, money markets were tipping official rates at more than 4 per cent by mid-next …

Australia aims to ease inflation pressures ahead of election
2 years, 8 months ago

Australia aims to ease inflation pressures ahead of election

Associated Press  

CANBERRA, Australia — Australia’s government presented a range of economic measures on Tuesday such as halving the tax on gasoline to help cushion the impact of high inflation and win votes at elections due by May. With inflation increasing in Australia and elsewhere driven in part by higher oil prices, the tax on gasoline and diesel will be halved from …

How China's hard landing could expose Australia as a one-trick export pony hitched to one wagon
3 years, 1 month ago

How China's hard landing could expose Australia as a one-trick export pony hitched to one wagon

ABC  

We'll never know for sure how he did it. It also would have lit the fuse on a debt time bomb that has engulfed other major developers and plunged China's $US5 trillion property sector into a crisis that threatens to spill over into the Middle Kingdom's financial system and the global economy. Since May, iron ore prices have slumped 60 …

Why a huge surge in US inflation could cause Australian house prices to drop
3 years, 1 month ago

Why a huge surge in US inflation could cause Australian house prices to drop

ABC  

The Australian property market has for many years defied the laws of gravity. The property market is influenced by more than just interest rates, but the fear is that the increase in fixed rates, combined with tighter macro prudential regulation, will knock the wind out of the market. Interest rate hikes will be much sooner than expected Photo shows A …

House prices keep surging in Australia
3 years, 1 month ago

House prices keep surging in Australia

Daily Mail  

Source: CoreLogic data in median house price increases in the year to October 2021 CANBERRA: Up 29 per cent to $985,040 DARWIN: Up 17.1 per cent to $567,056 PERTH: Up 16.7 per cent to $550,044 ADELAIDE: Up 22.5 per cent to $591,558 BRISBBANE: Up 24.8 per cent to $731,392 MELBOURNE: Up 19.5 per cent to $972,659 SYDNEY: Up 30.4 per …

Mortgage interest rates may soon be on the way up as the Aussie dollar falls
3 years, 9 months ago

Mortgage interest rates may soon be on the way up as the Aussie dollar falls

ABC  

For many Australians, the biggest financial decision they will likely ever make is buying a home. The conclusion to all of this is that higher local inflation puts pressure on both the financial markets and the Reserve Bank to raise interest rates. Markets see a world of higher interest rates Financial market participants trade every day in real time, with …

Why the Australian dollar is rising — and what that's got to do with your mortgage repayments
3 years, 10 months ago

Why the Australian dollar is rising — and what that's got to do with your mortgage repayments

ABC  

The Australian dollar is on the move, now hovering around 80 US cents. A stronger economy means a higher dollar The Australian dollar is what's called a commodities currency, meaning its value against the US dollar, for example, rises and falls as commodities prices move. He says despite the Reserve Bank's statement that it would not raise interest rates until …

Federal Reserve's inflation target fudge: what it means for Australians
4 years, 3 months ago

Federal Reserve's inflation target fudge: what it means for Australians

ABC  

Late last week, the chairman of the US central bank announced major changes to the way the US will be targeting inflation in coming years. Instead of trying to keep inflation around 2 per cent by lowering or raising interest rates, Fed chairman Jerome Powell said the US central bank might let things run a bit hot for a while …

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