Why is the Australian dollar falling and what could it mean for you?
2 days, 7 hours ago

Why is the Australian dollar falling and what could it mean for you?

ABC  

The Australian dollar is around its lowest level since 2020 against the US currency, continuing its move towards 61 US cents with a sharp fall over the weekend. "While the strong US dollar has left no prisoners, the Aussie softness has been exacerbated by tariff angst, fears over economic growth in China and the repricing in domestic interest rate expectations," Mr Coombs notes. If you're heading across the ditch, for example, the Australian dollar is buying more than 1.10 New Zealand dollars — that's a better exchange rate than back in September. "A lower Aussie dollar is good for Australian exports but … puts upward pressure on inflation through imported products," AMP deputy chief economist Diana Mousina explains. So expect to see the Australian dollar move in reaction to those data points and what they could mean for the timing of interest rate cuts.

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History of this topic

Aussie Dollar Traders Ramp Up Bearish Bets With 2022 Low in View
5 days, 4 hours ago

Aussie Dollar Traders Ramp Up Bearish Bets With 2022 Low in View

Live Mint  

-- Traders are increasingly positioning for the Australian dollar to fall to levels last seen in 2020 as economic data weaken and increased US tariffs look more likely. Option trading volume on the Australian dollar versus the greenback on Wednesday surged to the highest in three weeks as the pair hovered not far above 0.6170, its 2022 low, according to …

Interest rates, exporters and Reserve Bank intervention: There's a lot at stake as the Australian dollar weakens
1 week, 4 days ago

Interest rates, exporters and Reserve Bank intervention: There's a lot at stake as the Australian dollar weakens

ABC  

Is the Reserve Bank close to stepping into the currency market to support the Australian dollar and, if so, what does this mean for millions of Australians? Reserve Bank can intervene to support the dollar The Reserve Bank last intervened in the foreign exchange market in 2007-08 during the global financial crisis, when it bought Australian dollars. "This was in …

Dollar eases in cautious start to 2025; yen lingers at five-month lows
Trending News
1 week, 6 days ago

Dollar eases in cautious start to 2025; yen lingers at five-month lows

Live Mint  

By Ankur Banerjee SINGAPORE - The U.S. dollar wobbled at the start of 2025 trade on Thursday after a strong year of gain against most currencies, with the yen anchored near its lowest level in more than five months as investors ponder U.S. interest rates staying higher for longer. A wide interest rate difference between the U.S. and other economies …

Australian dollar now at risk of plummeting to pandemic-era lows, analysts say
2 weeks ago

Australian dollar now at risk of plummeting to pandemic-era lows, analysts say

ABC  

The Australian dollar has fallen sharply, hitting a multi-year low of 61.88 US cents — a level not seen since October, 2022. "The problem with the Australian dollar appears to be that there was a real wobble in the Chinese currency into New Year's Eve," InTouch Capital Markets senior FX analyst Sean Callow said. The US dollar has performed strongly …

Dollar firms as US rates outlook dominates
3 weeks, 1 day 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 …

The Australian dollar could be heading to a 20-year low, on risks of China, Trump and slow growth
3 weeks, 1 day ago

The Australian dollar could be heading to a 20-year low, on risks of China, Trump and slow growth

ABC  

You wouldn't be an economics forecaster for quids. A weak Chinese economy, American threats to impose punishing trade tariffs, a poor medium-to-longer-term outlook for our key exports and a sluggish economy are likely to keep the Australian dollar under pressure through 2025, threatening to send it into the 50 US cents. The upside of heading down The Australian dollar is …

Dollar Falls as Treasury Pick Tempers Trump Bets: Markets Wrap
1 month, 3 weeks ago

Dollar Falls as Treasury Pick Tempers Trump Bets: Markets Wrap

Live Mint  

The dollar fell and Bitcoin’s rally stalled as traders viewed Donald Trump’s pick of Scott Bessent for Treasury Secretary as a measured choice, tempering some of the more fevered bets spurred by the president-elect’s victory. The dollar has now climbed for eight straight weeks, the longest advance in more than a year, as traders continued to price Trump’s fiscal policies …

US dollar and bitcoin advance spurred by Trump tariff expectations
2 months 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
2 months 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, 3 weeks 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 …

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?
3 months, 3 weeks ago

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?

ABC  

Perhaps no question matters more to Australians worn down by three years of relentless cost pressures: when will the Reserve Bank cut interest rates? But not too much – which is why when inflation shoots high, the Reserve Bank raises interest rates to suppress demand by making it more expensive to borrow and spend. But the Reserve Bank prefers a …

How the US Federal Reserve rate cut could impact the race for the White House between Harris and Trump
3 months, 3 weeks ago

How the US Federal Reserve rate cut could impact the race for the White House between Harris and Trump

ABC  

The US Federal Reserve has cut rates in a dramatic move that will have a major impact on the American economy and could help determine who occupies the White House for the next four years. By cutting rates by half a per cent, the Fed has signalled it thinks the battle against the high inflation that has plagued the US …

Why is the US cutting interest rates? What does it mean for Australia?
3 months, 4 weeks ago

Why is the US cutting interest rates? What does it mean for Australia?

ABC  

The US Federal Reserve has cut interest rates overnight in an important move for the global economy. Economists predicted the Fed would want to start cutting rates before inflation hits 2 per cent because there's a long lag time between interest rate movements and their effect on the economy. It means the Reserve Bank's cash rate target, which sits at …

Dollar stable, yen wobbles ahead of US inflation data
4 months ago

Dollar stable, yen wobbles ahead of US inflation data

Hindustan Times  

By Ankur Banerjee Dollar stable, yen wobbles ahead of US inflation data SINGORE -The dollar was steady on Tuesday and the yen inched away from one-month highs in cautious trading as investors braced for U.S. inflation data and reassess expectations of a large interest rate cut from the Federal Reserve next week. A mixed labour report on Friday failed to …

Why the Reserve Bank will be forced to cut rates before year's end
4 months ago

Why the Reserve Bank will be forced to cut rates before year's end

ABC  

Until just a few weeks ago, it seemed as though the developed world had pulled off what once was thought to be the impossible. And yet, despite this mounting evidence of a critical economic slump, there remains a rump of high-profile economists openly criticising the Reserve Bank of Australia's reluctance to push interest rates above 5 per cent. Parliament House …

Australian dollar tumbles on fears of Chinese economic slowdown
5 months, 3 weeks 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 …

Commonwealth Bank forecasts massive interest rate cuts for Australians: Here's when the country's biggest bank predicts they will begin
1 year ago

Commonwealth Bank forecasts massive interest rate cuts for Australians: Here's when the country's biggest bank predicts they will begin

Daily Mail  

The Commonwealth Bank is now forecasting six interest rate cuts in 2024 and 2025 - starting in September next year as Australian inflation moderates faster than predicted. Mr Halmarick is basing his prediction of 150 basis points of rate cuts, in 2024 and 2025, on inflation falling back to the top of the Reserve Bank's two to three per cent …

The health of China's economy could determine whether a recession is on the cards in Australia
1 year, 4 months ago

The health of China's economy could determine whether a recession is on the cards in Australia

ABC  

The Australian dollar has fallen from 68.8 US cents on June 15 to 64 US cents this week. "China's central bank allows the yuan to trade +/-2 per cent each day either side of its fixing rate," Westpac senior currency strategist Sean Callow told The Drum. Why a fall in the Australian dollar may signal good news for mortgage-holders Photo …

Australian dollar ‘at risk of a slide’ as China’s economic troubles deepen
1 year, 5 months ago

Australian dollar ‘at risk of a slide’ as China’s economic troubles deepen

ABC  

The Australian dollar hit a nine-month low against the US dollar Monday. Key points: The Australian dollar has hit a nine-month low There are growing concerns about the health of China's economy Global investors are on edge as another major Chinese investment firm shows signs of stress It fell to 64.59 US cents before recovering in afternoon trade to 64.8 …

The Australian dollar is going into hibernation, and it's because of interest rates and commodity prices
1 year, 5 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 …

Federal Reserve hikes interest rates but gives RBA room to pause
1 year, 9 months ago

Federal Reserve hikes interest rates but gives RBA room to pause

ABC  

Never waste a crisis. "We did consider that in the days running up to the meeting," Powell told reporters in a press conference after today's rate rise decision, referring to a period where the banking crisis threatened to spiral out of control. But Powell was keen to maintain a link between the US banking crisis and inflation when explaining why …

Could interest rates in Australia fall after the collapse of two US banks?
1 year, 10 months ago

Could interest rates in Australia fall after the collapse of two US banks?

ABC  

Tuesday was an extraordinary day for bond market traders as they witnessed extreme price movements — and this matters for millions of Australians because the price movements reflect where interest rates are heading. Why Silicon Valley Bank collapsed Photo shows A company sign next to a parking lot displays the numbers 3003 and letters svb The sudden demise of Silicon …

Australians feeling the sting of inflation and rising interest rates could soon face a recession — and more pain
1 year, 10 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 …

Reserve Bank warns of at least two more interest rate rises in coming months, as the economic outlook worsens
1 year, 11 months ago

Reserve Bank warns of at least two more interest rate rises in coming months, as the economic outlook worsens

ABC  

Australia's cash rate has hit 3.35 per cent, after the Reserve Bank raised interest rates for the ninth time in a row — and signalled more interest rate pain ahead. That was the view of traders in the money market, who had priced loans on the basis that the bank's cash rate would climb just 0.35 points further after being …

The risk of Australia entering recession has just risen
1 year, 11 months ago

The risk of Australia entering recession has just risen

ABC  

There are early signs Australia's economy is buckling under the strain of inflation and cost-of-living pressures. "As regards consumer spending specifically, a sharp curtailment due to higher interest rates and weaker house prices remains the major downside risk for the economy this year." Economists predict that despite recent drops in retail sales and house prices, the Reserve Bank will likely …

Australia has a problem with inflation, and that likely means more interest rate hikes to come
2 years, 2 months 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, 3 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, 3 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 …

Australian central bank lifts cash rate to 9-year high 2.6%
2 years, 3 months ago

Australian central bank lifts cash rate to 9-year high 2.6%

Associated Press  

CANBERRA, Australia — Australia’s central bank on Tuesday boosted its benchmark interest rate for a sixth consecutive month to a nine-year high of 2.6%. The Reserve Bank of Australia’s increase of a quarter percentage point to the cash rate was smaller than those at recent monthly meetings. Philip Lowe said the smaller rise reflected that fact that the “cash rate …

Reserve Bank slows the pace of interest rate rises with 0.25 percentage point increase
2 years, 3 months ago

Reserve Bank slows the pace of interest rate rises with 0.25 percentage point increase

ABC  

The Reserve Bank has elected to slow the breakneck pace of interest rate rises, with the sixth straight hike being 0.25 of a percentage point instead of the widely expected 0.5. Key points: The RBA's cash rate target has risen a further 0.25 of a percentage point to 2.6 per cent It is the first time since May that the …

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, 6 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 …

ASX rally fizzles out as US Federal Reserve hikes key interest rate, and Australian dollar surges above 70 US cents
2 years, 6 months ago

ASX rally fizzles out as US Federal Reserve hikes key interest rate, and Australian dollar surges above 70 US cents

ABC  

The Australian share market has closed lower for the fifth day in a row, despite an early relief rally, after the US Federal Reserve raised official interest rates by three-quarters of a percentage point as expected overnight. Key points: The US central bank raised official interest rates by 0.75pc to a new 1.5 to 1.75pc target range The Dow Jones …

Declining Sydney property prices a forecast for the rest of Australia, experts say
2 years, 7 months ago

Declining Sydney property prices a forecast for the rest of Australia, experts say

ABC  

As interest rates rise, Sydney house prices are dropping and experts say it is a "bellwether" for what is about to happen across the rest of the country. Key points: Interest rates are driving the decline in value of Sydney properties The Reserve Bank of Australia increased the cash rate to 0.85 per cent. "If we see interest rates rise …

Australian central bank hikes rate for 1st time in 11 years
2 years, 8 months ago

Australian central bank hikes rate for 1st time in 11 years

Associated Press  

CANBERRA, Australia — Australia’s central bank on Tuesday lifted its benchmark interest rate for the first time in more than 11 years. Two weeks after the benchmark rate rose by a quarter of a percentage point to 6.75% in November 2007, Prime Minister John Howard’s conservative government was voted out of office after more than 11 years in power. He …

Australia hikes interest rates in potential election shakeup
2 years, 8 months ago

Australia hikes interest rates in potential election shakeup

Al Jazeera  

Reserve Bank of Australia’s move means millions of Australians face higher repayments on their home loans. Australia’s central bank has raised interest rates for the first time in more than a decade, following the lead of a growing list of Asia-Pacific economies taking action to tame rising inflation. The first rate hike since late 2010 comes after Australia’s consumer prices …

Why Australians needn't panic about possible interest rate rises as RBA ponders next step
2 years, 11 months ago

Why Australians needn't panic about possible interest rate rises as RBA ponders next step

ABC  

They say talk is cheap, although for the past few years, it hasn't been quite as cheap as cash. Central banks lost control a year ago It's an easy mistake to make; to believe central banks are all-powerful and dictate the direction and size of interest rate movements. A year ago, the 10-year government bond rate – often called the …

Why a huge surge in US inflation could cause Australian house prices to drop
3 years, 2 months 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 …

Mortgage interest rates may soon be on the way up as the Aussie dollar falls
3 years, 10 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, 4 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 …

The secret behind the booming stock market in the face of the coronavirus crisis
4 years, 7 months ago

The secret behind the booming stock market in the face of the coronavirus crisis

ABC  

Forget everything you've ever learned about the economy and the supposed link with financial markets. Just three months into what the Bank of England describes as the deepest and sharpest downturn in centuries and stock markets are on a tear, galloping back towards record levels at breakneck speed. Don't even think about thinking On Thursday night, Jerome Powell, the head …

Asia's stock rally pause ahead of US jobs data, euro at one-and-a-half month top
4 years, 7 months ago

Asia's stock rally pause ahead of US jobs data, euro at one-and-a-half month top

Deccan Chronicle  

SYDNEY: Asian stocks were poised for their biggest weekly rise in over eight years while the euro hovered near a 1-1/2 month high as Europe’s central bank surprised with more stimulus, fuelling hopes for a global rebound. The equities rally prompted investors to take winnings ahead of Friday’s nonfarm payrolls data, which is expected to show further deterioration in the …

Australian share market rises, dollar comes off five-month high
4 years, 7 months ago

Australian share market rises, dollar comes off five-month high

ABC  

The Australian share market rose this session but ended off its early highs, after a strong session on Wall Street. Key points: The major US share indices gained between 0.8 and 2.05pc last night The Nasdaq is now just 1.4pc from its record high set in February, the S&P 500 still 7.8pc off The Australian dollar has eased back from …

Australian dollar retreats to 69.3 US cents, as ASX shrugs off recession fears
4 years, 7 months ago

Australian dollar retreats to 69.3 US cents, as ASX shrugs off recession fears

ABC  

The Australian dollar has had a temperamental day after the impact of summer bushfires and COVID-19 on the economy was revealed. Key points: The Australian dollar jumped as high as 69.83 US cents, its highest value since January 3 The ASX 200 is about 23 per cent away from hitting its February record high Australia's economy contracted by 0.3pc in …

Stocks plunge, dollar battered as Fed's emergency cut spooks investors; steps by global policymakers fail to stem market rout
4 years, 9 months ago

Stocks plunge, dollar battered as Fed's emergency cut spooks investors; steps by global policymakers fail to stem market rout

Firstpost  

The US Federal Reserve cut interest rates by 100 basis points on Sunday to a target range of 0 percent to 0.25 percent. Meanwhile, SGX Nifty suggests Indian markets will see another day of red#CoronavirusPandemic pic.twitter.com/fJD7Lzqx5J — CNBC-TV18 March 16, 2020 US stock futures plunged 4.8 percent to hit their down limit before daybreak in Singapore. “We really need to …

ASX extends its seven-session losing streak, but losses moderate in afternoon trade
4 years, 10 months ago

ASX extends its seven-session losing streak, but losses moderate in afternoon trade

ABC  

The Australian share market has extended its losing streak to a seventh straight session, but closed well off the lows of the day, ahead of a widely anticipated interest rate cut tomorrow. ASX at Monday's close: The ASX 200 ended down 0.8 per cent to 6,391 points, well off its lows Markets now consider a 25-basis-point cut by the Reserve …

Coronavirus isn't the only contributor to Australia's weakening dollar
4 years, 10 months ago

Coronavirus isn't the only contributor to Australia's weakening dollar

ABC  

Australia's dollar fell to an 11-year low this week, hitting 65.43 US cents on Thursday. The decline began after Reserve Bank governor Philip Lowe delivered a speech in Sydney conceding Australia's economy had weakened towards the end of 2018 and more interest rate cuts may be needed in 2019. The RBA ended up cutting Australia's interest rate three times last …

Australian dollar slumps to 11-year low on weak jobs data; ASX slips
4 years, 10 months ago

Australian dollar slumps to 11-year low on weak jobs data; ASX slips

ABC  

The Australian dollar has plunged to an 11-year low — its worst level since the global financial crisis — following an unexpected jump in unemployment. Key points: The Australian dollar has fallen more than 1pc over the past day and is at its weakest level since the peak of the global financial crisis passed in early 2009 Analysts say the …

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