Australian Dollar At 70.5yen At The Moment!?

[Streeter]

The americans are crying about their economy and they are only down ~15yen compared to 2 months ago.

Australia is down nearly 35 yen from 2 months ago!!!!

I know the yen isnt the benchmark but still that sounds seriously bad! how are things in Aus at the moment? many large banks/businesses folding yet?

*Forgive my lack of knowledge when it comes to Economics, but this massive drop in the AUD will effect me hugely

[WIHAGTR]

Relax, a man in a suit in the news this morning was standing behind a board with numbers that were bright red saying everything will be JUST fine

[Beer Baron]

nothing is too bad in aus. but the problem is in the US when things start to go bad all the big investment firms bring their money home. ie they pull out of foreign markets and re-invest heavily in their US dollar at T-bills etc. this has the obvious effect of propping up their dollar and it deals us a pretty big blow. it should be better than it is right now purely because our interest rates are comparitively high next to the USD and JPY.

and yes, exchange rates are not really a measure of economic health. they are just how that currencey is trading. a weak dollar against the yen can help our economy in many ways. anyone exporting goods or services is miles better off obviously, and it must investment here more attractive.

you are right though in that it completely f**ks importers (or japanese exporters). the price of anything we buy in from japan has just skyrocketed.

[Streeter]

yeah I dont think anyone will be getting anything from japan anytime soon with ~35% of the cost extra disappearing into exchange rate space. There goes my wife and I`s soul source of income

now if only the Yen would follow suit and dive maybe the AUD wouldnt be so bad compared LOL

[dezz]

I should've grabbed the rest of my shit off you back when it was at 103 Jesse!

Hopefully it bounces back soon and I'll be in touch!

[Mr. Keets]

I was going to bring back a bunch of gear when I go to TAS, but probably not now. The Japanese market is at it's lowest point in 4 years and the $AU is losing against it hows that work. Damn Masters of the Universe. But I did get my OSG 5 speed and diff before it all imploded

[Streeter]

^^Yeah thats kind of why I posted this topic. Im hopeless at economics but I thought that the currency was kind of linked to the economy. Isnt Australia supposed to be no problems at the moment (and was booming recently) while japan is in panic about massive losses... yet the AUD is massively down on the yen WTF!?!??

35% loss is huge isnt it? Ive been exporting for 5 years and have never seen that kind of drop before. and yet the economies are reverse???

[Beer Baron]

most currencies are heavily indexed against the USD. as I said. when the US economy and US finanical markets are in trouble they bring their money home. take it out of risky stuff (foreign markets) and put it back into the good old greenback and T-bills etc. this props up the comparative value of the USD since it is being heavily bought. amongst currencey traders they follow suit and sell off currencey like the AUD, JPY etc which further shoots them down.

also, our dollar has seen record value off the back of the resources industry boom and super high interest rates. the RBA today cut interest rates by 100bps (most only exptected 50bps max). so that 1% rate cut will put further downward pressure on the AUD. so I would say the AUD may correct upwards a little over the next few days (as it should not be THIS low). but it may take a while before it gets up near anything decent.

to put it simply guys like you and I who do a lot of stuff with importing japanese goods to aus are heavily f**ked. it's great news for farmers and exporters though. great news for our tourist industry too. f**ked for me since I travel to japan twice a year and spend yen like it's toy money. not anymore...

though this is a great time to send any JPY to aus if you ever need to do that...

on the bright side I look back at all the stuff I bought or sold while the AUD was strong. imported 2 R35 GTRs, and a ton of bits for my cars, especially the 32. so I think I made the most of it as best I could. If i could have sent more AUD over to yen I would have! spewing it's not still sitting on 105yen/dollar

[Beer Baron]

ps. think of how cheap any aussie sh1t you want will be. you want me to bring you some lynxx etc next month? then pay me in yen onegaishimasu!

[Streeter]

I have nearly $40k in AUD and no money here to live on at the moment. So Im totally screwed lol

what I dont understand is if they pull money out of investments like japan then shouldnt the yen also fall? I dont give a rats about how the AUD compares to the USD.

PS. thanks to all the customers who pay on time, unfortunately there is a large % that dont and now Im really caught out

Maybe I should move back to Aus and start working on a farm??

Edited October 7, 2008 by Streeter

[elrodeo666]

It was 5 year record low on the stock market here in Jappa today. Currencies all around the world are bouncing around. I reckon its about time oz dollar weakened to the yen, be nice to get a value for dollar /yen trip back home.

I think it will even out but for the next few weeks the market and currencies will be up and down like a yoyo..

[Streeter]

^^have a nice trip, Im just trying to figure out how to pay next months rent

[Laurence]

I would say the AUD may correct upwards a little over the next few days (as it should not be THIS low).

Why? Why is 71 too low? It really makes absolutely no sense whatsoever to say that.

Foreign exchange is complete voodoo, and an essay on market economics (no matter how eloquent and well reasoned) will not change that.

It is like dealing with crazy people, you can't fight the crazy, if you try to understand the crazy you will just go crazy so you just have to surf the crazy. Unfortunately this time I got dumped face first into a reef.

Edited October 8, 2008 by Laurence

[Streeter]

and now we are in the 60s!! man I just wish I had my money in Japan, Id come back to Aus and buy a mansion at this rate LOL

unfortunately Im on the other side of this

[Marco-R34GTT]

Maybe I should move back to Aus and start working on a farm??

Currently recruiting...

Want job?

[akeenan]

hurry up pay day. cant wait to send a heap of cash back to oz.

[Streeter]

Currently recruiting...

Want job?

with the dollar roughly 35% down you can charge 35% more! so does that work into my salary aswell LOL

[Beer Baron]

laurence is right. it's very hard to predict what will happen as currencey trading is just as shady as any other. a guy here has subscription to the $$$ bloomberg info complete with all their market predictions and analysis. and right now they are not predicting nice things for the AUD over the next few years but I wonder what they were predicting 4 weeks ago when things were rosy? I bet they weren't predicting this. so when it comes down to it even the smartest coookies out there don't really know what will happen. it's all just guessing with some guesses more educated than others.

I am glad I don't need to import much stuff for the rest of this year, but even a few bits and pieces I need will now cost me the farken earth. and even worse I have 2 trips to Japan scheduled for the next 3 months... d'oh! better go grab all the loose yen floating around my house. I'm gunna need it!

[jonn]

Times like this I'm glad I get paid in UK pounds

[satanic]

Haha, great thing about working in the finance industry is you get to see all those cool projection reports... none of this is news really.

HINT: It'll only get worse... hold on to your g-strings everyone!