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Aussie Dollar Slides More, Below US $ Value!!


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From Wall Street Journal last night, they have this headline: "Currency Investors Turn to Unlikely Pair" with these highlights: "Investors bracing for slower growth in China are turning to a formerly little-used currency trade: selling Australian dollars and buying Mexican pesos. The bet is that Australia's economy, and its currency, will suffer as Chinese demand cools for raw materials like iron and coal. Mexico, with closer ties to the resurgent U.S. economy, is seen as more insulated if commodities prices fall. With interest rates near zero in most developed countries, heavily traded currencies like the dollar, euro and yen offer little or no returns. Investors are getting more creative about what they buy and sell. In the case of the Aussie and peso, that means embracing the extra risk that comes from trading two traditionally volatile currencies against each other. Investors said Australia and Mexico act as proxies for the diverging fortunes of their two biggest markets, China and the U.S. As China begins to pivot toward an economy that is driven more by domestic demand and less by exports and infrastructure spending, its appetite for raw materials is expected to slacken, denting the prospects for Australia's mining-heavy economy." Right now the Wall St. Jour. has cost of an Aussie dollar down to $0.9880.

 

Here are some added insights into the economy for Australia from this WSJ analysis: "IFor most of the past decade, Australia's reliance on China was viewed by investors as a reason to buy the country's currency. Australia's trade with China exploded over the past decade, with exports rising from $8.8 billion in 2001 to $77 billion in 2011. Natural resources such as iron ore and coal account for more than 80% of the country's sales to China. Booming resource exports helped Australia avoid a recession in 2008, and its central bank kept interest rates relatively high as other developed countries cut rates to near zero. But mining exports have slowed in the past year, and the strong currency has hurt tourism and other industries. On May 7, the Reserve Bank of Australia cut interest rates to a record-low 2.75% and warned that the Aussie's high value was limiting growth. The net bet on a stronger Australian dollar has plunged about 90% in the past month, according to the Commodity Futures Trading Commission."

 

From the Financial Review in Australia during the past hour, they have this headline: "Dollar dip boost for tourism groups" with these highlights: "The tourism industry is breathing a sigh of relief as the dollar dips below parity with the US dollar, but it needs to fall further to change the spending patterns of overseas visitors, they say. Visitors spend less and stay for shorter periods when the dollar is high. Tourism Australia managing director Andrew McEvoy said a 'slight fall' in the Australian dollar would be *welcome news to many international visitors. 'However, a few cents drop in the exchange rate doesn’t change the broader picture. The Australian dollar is still strong, this is not new and is something our industry is adapting to,' Mr McEvoy said. Tourism and Transport Forum’s Rowan Barker said spending was 'below what you would hope' due in part to the higher dollar. 'It has massively impacted on the buying power of particularly European and US travellers . . . they are opting for different accommodation options, they are opting for different attractions and entertainment options,' he said. Mr Barker said the dollar had been steady against the Chinese yuan, and Chinese visitors were propping up the entire tourism industry, with the fastest growth and highest spend per head. Australian Industry group chief executive Innes Willox welcomed the dollar’s move below parity. 'Even slight movements downwards in the dollar are welcome because they affect investment decisions, they affect buying decisions and they affect immediate business conditions,' Mr Willox said. He said the two years of the dollar at above parity has forced painful adjustments and job losses. 'Australian industry generally is competitive at about US88¢,' he said."

 

Full stories at:

http://online.wsj.com/article/SB10001424127887324031404578481292791345084.html?mod=WSJ_hps_LEFTTopStories

http://www.afr.com/p/national/dollar_dip_boost_for_tourism_groups_G4FiOPuufNP5mS8Yo7KCsL

 

THANKS! Enjoy! Terry in Ohio

 

Celebrity Solstice Visual Highlights? From our June 7-19, 2011, Solstice cruise from Barcelona that had stops in France, Italy, Kotor and Dubrovnik, I have pull together a number of wonderful visuals of the Solstice, its features, food, entertainment, options, etc. We are now at 5,588 views for this shorter version of my larger full review of that cruise and all of the port pictures/details. Check these postings and added info at:

http://boards.cruisecritic.com/showthread.php?t=1803477

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Hallelujah!

 

Kiwi Kruzer: It was only 10 years ago that it was .50c to the US $.

 

Did not realize things were that low ten years ago. Below is more detailed' date=' historic info that pulled together from the past five years:

 

From: http://www.oanda.com/currency/converter/

 

[b']Past Five Years High's and Low's[/b]:

 

AUD / USD

Period Average 0.9342

Period Highest 1.1028 (Aug. 2, 2011)

Period Lowest 0.6120 (Oct. 28, 2008)

April 17, 2013: 1.0358

May 14, 2013: 0.9941

 

NZD / USD

Period Average 0.7372

Period Highest 0.8797 (Aug. 2, 2011)

Period Lowest 0.4944 (Mar. 3, 2009)

April 17, 2013: 0.8468

May 14, 2013: 0.8247

 

Euro / USD

Period Average 1.3625

Period Highest 1.5951 (Apr. 23, 2008)

Period Lowest 1.1942 (June 8, 2010)

April 17, 2013: 1.3098

May 14, 2013: 1.2981

 

April 17, 2013:

Australian dollar 1.0344

New Zealand dollar 0.8494

Euro 1.3177

 

March 10, 2012

Australian dollar 1.0227

New Zealand dollar 0.8259

 

February 10, 2012

Australian dollar 1.0359

New Zealand dollar 0.8404

 

January 10, 2012

Australian dollar 1.0517

New Zealand dollar 0.8367

 

December 10, 2012

Australian dollar 1.0521

New Zealand dollar 0.8393

 

October 10, 2012

Australian dollar 1.0221

New Zealand dollar 0.8178

 

August 10, 2012

Australian dollar 1.0565

New Zealand dollar 0.8153

 

June 10, 2012

Australian dollar 1.0198

New Zealand dollar 0.7619

 

April 10, 2012

Australian dollar 1.0332

New Zealand dollar 0.8208

 

February 10, 2012

Australian dollar 1.0747

New Zealand dollar 0.8326

 

December 10, 2011

Australian dollar 1.0225

New Zealand dollar 0.7769

 

October 10, 2011

Australian dollar 1.0058

New Zealand dollar 0.7875

 

August 10, 2011

Australian dollar 1.0309

New Zealand dollar 0.8283

 

June 10, 2011

Australian dollar 1.0649

New Zealand dollar 0.8194

 

April 10, 2011

Australian dollar 1.0429

New Zealand dollar 0.7739

 

February 10, 2011

Australian dollar 1.0088

New Zealand dollar 0.7676

 

December 10, 2010

Australian dollar 0.9867

New Zealand dollar 0.7550

 

October 10, 2010

Australian dollar 0.9756

New Zealand dollar 0.7485

 

August 10, 2010

Australian dollar 0.9048

New Zealand dollar 0.7181

 

June 10, 2010

Australian dollar 0.8323

New Zealand dollar 0.6744

 

April 10, 2010

Australian dollar 0.9256

New Zealand dollar 0.7070

 

February 10, 2010

Australian dollar 0.8775

New Zealand dollar 0.6929

 

December 10, 2009

Australian dollar 0.9124

New Zealand dollar 0.7185

 

October 10, 2009

Australian dollar 0.8889

New Zealand dollar 0.7309

 

August 10, 2009

Australian dollar 0.8352

New Zealand dollar 0.6740

 

June 10, 2009

Australian dollar 0.8030

New Zealand dollar 0.6319

 

April 10, 2009

Australian dollar 0.7142

New Zealand dollar 0.5823

 

February 10, 2009

Australian dollar 0.6624

New Zealand dollar 0.5271

 

December 10, 2008

Australian dollar 0.6576

New Zealand dollar 0.5424

 

October 10, 2008

Australian dollar 0.7026

New Zealand dollar 0.6215

 

August 10, 2008

Australian dollar 0.9127

New Zealand dollar 0.7187

 

June 10, 2008

Australian dollar 0.9595

New Zealand dollar 0.7561

 

THANKS! Enjoy! Terry in Ohio

 

Did a June 7-19, 2011, Celebrity Solstice cruise from Barcelona that had stops in Villefranche, ports near Pisa and Rome, Naples, Kotor, Venice and Dubrovnik. Enjoyed great weather and a wonderful trip. Dozens of wonderful visuals with key highlights, tips, comments, etc., on these postings. We are now at 129,736 views for this live/blog re-cap on our first sailing with Celebrity and much on wonderful Barcelona. Check these postings and added info at:

http://www.boards.cruisecritic.com/showthread.php?t=1426474

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I lived in Australia 10 - 12 years ago and for us the exchange rate was wonderful! I've been back a couple of times since then, but I haven't been able to bring myself to go back in the last 2 years. I know I would just be saying, "I remember when "X" only cost "Y" U.S. dollars".

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I suggest there are 3 factors impacting the $A vs $US right now. Forecast softening of demand from China, generally depressed local economy in an interim period for the country leading up to Sept 14 election & a further official interest rate cut this week.

 

Just know my on-board account on RC Voyager in Oct is going to cost me more :(:(:(

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Hallelujah!

 

Never quite understood why the pound was as high as it is....the country makes nothing having decimated most of its industry and sold its taxpayer built enterprises to people that proceeded to rip the heart of them all for 30 pieces of silver. Even the speculation is built on nothing more than organised gambling....:p

 

But seriously, I can understand the US currency being high. The US is such a powerhouse of consumption, and it is kept afloat by its love of all things military...in fact much of its industry depends on defence spending and contracts. Never understood the pound.......

Edited by 6andy6
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Never quite understood why the pound was as high as it is....the country makes nothing having decimated most of its industry and sold its taxpayer built enterprises to people that proceeded to rip the heart of them all for 30 pieces of silver.
That seems to be a common jaundiced Australian view of the UK, possibly built on a distorted view of the extent to which taxpayer ownership either built or destroyed these industries. But somehow, whatever the answer to that, we manage to stay afloat.

 

In the meantime, Australia should be rejoicing at this currency movement because it might avert some of the consequences of "Dutch disease" which threatens the non-resources part of the Australian economy. Amongst my personal subjects of interest, for example, is the extent to which Qantas has been sorely wounded by "Dutch disease", which is a large part of why it is in such a parlous state at present.

But seriously, I can understand the US currency being high. The US is such a powerhouse of consumption, and it is kept afloat by its love of all things military...in fact much of its industry depends on defence spending and contracts.
As for the US, since when did rampant consumption make for a strong economic base? Remind me again who's actually paid for all of this US consumption? (And we are talking decades here, so nothing to do with partisan US politics.) Edited by Globaliser
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That seems to be a common jaundiced Australian view of the UK, possibly built on a distorted view of the extent to which taxpayer ownership either built or destroyed these industries. But somehow, whatever the answer to that, we manage to stay afloat. In the meantime, Australia should be rejoicing at this currency movement because it might avert some of the consequences of "Dutch disease" which threatens the non-resources part of the Australian economy. Amongst my personal subjects of interest, for example, is the extent to which Qantas has been sorely wounded by "Dutch disease", which is a large part of why it is in such a parlous state at present.As for the US, since when did rampant consumption make for a strong economic base? Remind me again who's actually paid for all of this US consumption? (And we are talking decades here, so nothing to do with partisan US politics.)

 

Tell me more about the "Dutch disease". Have not heard that economic term previously. Just trying to learn and know more. From Wikipedia, they say: "In economics, the Dutch disease is the apparent relationship between the increase in exploitation of natural resources and a decline in the manufacturing sector."

 

There are lots of pro/con and wide-ranging aspects to the U.S. economy. It is a large, consumer-focused, complicated, etc., type of economy. To say most of our economy is based on military spending is an over-simplification, etc. The U.S. is now doing a better job in using its energy resources, including through fracking. Those lower natural gas prices are helping many parts of our economy. There are not as many people here employed in manufacturing, but lots more is being produced here. Including right here in central Ohio where yesterday Honda announced production on a unique Acura NSX super sports car with advanced materials, etc. YES, there are technology, medical, housing, etc., aspects to our economic growth here. Many factors! Many challenges. It is hard to just say or assume that in larger countries, it is just one or two factors, only.

 

On the UK, they are a major banking center and have played off their greater economic freedoms compared to certain parts of Europe. Lots of economic challenges, questions and issues.

 

Clearly, Australia and NZ are much smaller in their populations, at a distance away from other markets/suppliers, etc. Interesting discussion!! BUT, we don't want to get too political on these CC Boards, per the "rules". It will be fascinating in the next seven months to see how the value of the Aussie and NZ dollars go down and maybe up during this period and affect our cruise experience in early 2014.

 

THANKS for all of the insights and comments! Enjoy! Terry in Ohio

 

Celebrity Solstice Visual Highlights? From our June 7-19, 2011, Solstice cruise from Barcelona that had stops in France, Italy, Kotor and Dubrovnik, I have pull together a number of wonderful visuals of the Solstice, its features, food, entertainment, options, etc. We are now at 5,721 views for this shorter version of my larger full review of that cruise and all of the port pictures/details. Check these postings and added info at:

http://boards.cruisecritic.com/showthread.php?t=1803477

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Tell me more about the "Dutch disease". Have not heard that economic term previously. Just trying to learn and know more. From Wikipedia, they say: "In economics, the Dutch disease is the apparent relationship between the increase in exploitation of natural resources and a decline in the manufacturing sector."
This is basically what's Australia is risking. Many export-dependent non-resources industries are struggling because of the high value of the Australian dollar.

 

Qantas is only one of them. It suffers particularly as it has become politically very difficult for Qantas to use the strong dollar to its benefit by (for example) doing expensive heavy maintenance offshore (like Virgin Australia does), where it would both be cheaper in absolute terms and even cheaper in Australian dollar terms, thus offsetting the fact that Qantas has to pay much of its flying crew in strong Australian dollar while collecting many fares in weak foreign currencies.

 

People in many other export-dependent non-resources industries say that they are being killed by the value of the Aussie dollar, to the extent that sound, well-known business of high international reputation have simply been unprofitable for years. (A well-known winemaker was specifically bemoaning this to me a few months ago.)

 

Hence, if there are signs that the Aussie is finally starting to weaken: Hallelujah!

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This is basically what's Australia is risking. Many export-dependent non-resources industries are struggling because of the high value of the Australian dollar. Qantas is only one of them. It suffers particularly as it has become politically very difficult for Qantas to use the strong dollar to its benefit by (for example) doing expensive heavy maintenance offshore (like Virgin Australia does), where it would both be cheaper in absolute terms and even cheaper in Australian dollar terms, thus offsetting the fact that Qantas has to pay much of its flying crew in strong Australian dollar while collecting many fares in weak foreign currencies. People in many other export-dependent non-resources industries say that they are being killed by the value of the Aussie dollar, to the extent that sound, well-known business of high international reputation have simply been unprofitable for years. (A well-known winemaker was specifically bemoaning this to me a few months ago.) Hence, if there are signs that the Aussie is finally starting to weaken: Hallelujah!

 

Appreciate these wise and added comments from the smart Globaliser in London. This helps me understand more on "Dutch disease" and its meaning/history. Very helpful. Always like learning more about places where we are headed. Good, interesting insights on the impacts on Qantas with expensive hearvy maintenance and pilot pay, etc. Also, the wine production economic pressures makes sense (or cents) as an economic factor/impact/example.

 

This morning's Wall Street Journal has the cost of an Aussie dollar at $0.9843. During the past 30 days, that Australian dollar has gone downhill from $1.04 to now nearly at 98 cents.

 

THANKS! Enjoy! Terry in Ohio

 

For details and visuals, etc., from our July 1-16, 2010, Norway Coast/Fjords/Arctic Circle cruise experience from Copenhagen on the Silver Cloud, check out this posting. This posting is now at 106,655 views.

http://www.boards.cruisecritic.com/showthread.php?t=1227923

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Appreciate this interesting update on the manufacturing move by Ford. Labor costs are high in Australia. As of right now, the cost for an Aussie dollar is at $0.9737, up slightly from yesterday's number.

 

THANKS! Enjoy! Terry in Ohio

 

Did a June 7-19, 2011, Celebrity Solstice cruise from Barcelona that had stops in Villefranche, ports near Pisa and Rome, Naples, Kotor, Venice and Dubrovnik. Enjoyed great weather and a wonderful trip. Dozens of wonderful visuals with key highlights, tips, comments, etc., on these postings. We are now at 130,927 views for this live/blog re-cap on our first sailing with Celebrity and much on wonderful Barcelona. Check these postings and added info at:

http://www.boards.cruisecritic.com/showthread.php?t=1426474

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In June of 2002, at a Fiji resort on the way to Australia an Aussie couple said "you'll just love Australia -- like America at half price" AND IT WAS. $25 Aussie dinner was just a little over US$12. Bet our upcoming NZ trip will not be the same. Anyway can't wait for New Zealand.

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In June of 2002, at a Fiji resort on the way to Australia an Aussie couple said "you'll just love Australia -- like America at half price" AND IT WAS. $25 Aussie dinner was just a little over US$12. Bet our upcoming NZ trip will not be the same. Anyway can't wait for New Zealand.

 

YES, lots has changed on currency values since 2002. Wish we could do things for a half-price cost in early 2014. But, we'll make it work and enjoy the down under experience.

 

From The Australian newspaper this morning, they have this headline: "Lock in Aussie dollar exchange rate before you travel, says expert" with these highlights: "Travellers should consider locking in exchange rates before they head overseas as the Australian dollar hit its lowest point in close to a year this week. National Australia Bank general manager of cards Michael Shurlin said putting spending money on travel cards in advance gave people certainty. 'You can do it months in advance or you can do it on the day you travel - it depends on your view of what will happen with the dollar.' The NAB Traveller Card allows travellers to lock in rates for up to ten currencies. The dollar hit a low of US95.94 cents on Thursday afternoon, the weakest level since early June last year."

 

There are two big unknowns from this article/suggestion. First, what does it cost to get such cards?? I'm sure it is not totally "free". Second, it is hard to know what will happen with the Aussie dollar in the coming months. Going down more?? Staying the same?? Hard to know that future direction for certain. Lots of variables and factors to consider!

 

Full story at:

http://www.theaustralian.com.au/travel/news/lock-in-aussie-dollar-exchange-rate-before-you-travel-says-expert/story-e6frg8ro-1226650562177

 

THANKS! Enjoy! Terry in Ohio

 

Celebrity Solstice Visual Highlights? From our June 7-19, 2011, Solstice cruise from Barcelona that had stops in France, Italy, Kotor and Dubrovnik, I have pull together a number of wonderful visuals of the Solstice, its features, food, entertainment, options, etc. We are now at 6,105 views for this shorter version of my larger full review of that cruise and all of the port pictures/details. Check these postings and added info at:

http://boards.cruisecritic.com/showthread.php?t=1803477

Edited by TLCOhio
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The Aussie dollar is a speculative currency and it bounces around a lot for reasons unrelated to the local economy. So it was somewhat frustrating that in 2008 we were happy to have avoided a recession yet had to watch our dollar plunge.

Money cards are not the cheapest way to buy money but they are fairly convenient. There are various fees involved and the exchange rate is often not the best. We have found the best way for us is to buy cash when the dollar is strong. We live near a part of Sydney where there are numerous money changing offices so it is easy to go and compare rates and buy.

Keep in mind that we are a country with a population of only 23 million in a region with billions of people. What happens here is not really very important in the economic scheme of things, except to us, of course.

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The Aussie dollar is a speculative currency and it bounces around a lot for reasons unrelated to the local economy. So it was somewhat frustrating that in 2008 we were happy to have avoided a recession yet had to watch our dollar plunge. Money cards are not the cheapest way to buy money but they are fairly convenient. There are various fees involved and the exchange rate is often not the best. We have found the best way for us is to buy cash when the dollar is strong. We live near a part of Sydney where there are numerous money changing offices so it is easy to go and compare rates and buy. Keep in mind that we are a country with a population of only 23 million in a region with billions of people. What happens here is not really very important in the economic scheme of things, except to us, of course.

 

Appreciate this excellent follow-up background and very good insights. Extremely helpful!! As of this morning, the Aussie dollar is at $0.9632 per this am's Wall Street Journal.

 

THANKS! Enjoy! Terry in Ohio

 

For details and visuals, etc., from our July 1-16, 2010, Norway Coast/Fjords/Arctic Circle cruise experience from Copenhagen on the Silver Cloud, check out this posting. This posting is now at 107,924 views.

http://www.boards.cruisecritic.com/showthread.php?t=1227923

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From the Wall Street Journal this morning, they have this headline: "New Zealand, China in Talks on Convertibility of Currencies" with these highlights: "Seeking to help its exporters, New Zealand is negotiating with China to make their currencies directly convertible. Most of New Zealand's exports to China are agricultural products—particularly milk powder, meat and wool—while most of its imports from there are computers, mobile phones and clothes. Wellington's push is aimed at driving down costs for companies that do business with China, which is close to overtaking Australia as New Zealand's No. 1 trading partner. Direct convertibility between the Chinese yuan and New Zealand dollar would end the need for New Zealand's companies and currency traders to convert New Zealand dollars or yuan into U.S. dollars when making or receiving payments. New Zealand's two-way trade with China totaled 15.3 billion New Zealand dollars (US$12.4 billion) in the year ended April 30, compared with NZ$16.8 billion with Australia. Trade relations took a knock earlier this month when China temporarily blocked millions of dollars of New Zealand meat from entering the country, as it bolstered scrutiny of imports after a spate of mainly homegrown food-safety scandals. Beijing is undertaking a long, gradual campaign to establish the yuan as a more market-oriented, international currency. China and Australia reached a deal to allow direct convertibility between the yuan and Australian dollar last month. As China has become more industrialized, it has become Australia's biggest trading partner and buyer of its commodities, including raw materials such as copper and iron ore."

 

As of today, we have 238 days or a little under eight months until boarding our Jan. 20-Feb. 3, 2014, Solstice adventure. Lots of time to see how these economic events with China, etc., affect the currency values in both Australia and NZ.

 

Full story at:

http://online.wsj.com/article/SB10001424127887323855804578506383781598470.html?mod=WSJ_hp_LEFTWhatsNewsCollection

 

THANKS! Enjoy! Terry in Ohio

 

Celebrity Solstice Visual Highlights? From our June 7-19, 2011, Solstice cruise from Barcelona that had stops in France, Italy, Kotor and Dubrovnik, I have pull together a number of wonderful visuals of the Solstice, its features, food, entertainment, options, etc. We are now at 6,132 views for this shorter version of my larger full review of that cruise and all of the port pictures/details. Check these postings and added info at:

http://boards.cruisecritic.com/showthread.php?t=1803477

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  • 2 weeks later...

From The Australian newspaper this morning based on Wall Street Journal reporting, they have this headline: "Aussie dollar's time in the sun is fading fast" with these highlights/comments: "The Aussie dollar is finding out who its friends are. After the halcyon days of 2011 and 2012 when the high-yielding currency appeared to shed its role as a global risk proxy, the Aussie is reverting to its status as a whipping boy for traders. From London to Sydney analysts are rushing to tell clients that the Aussie, the world’s fourth-most traded currency, has only just begun its downward spiral. Not content with a 6 per cent sell-off against the greenback since the start of May, bearish analysts argue that a recovering US economy, falling interest rates in Australia and a slowing China bode ill for the trades that fueled the Aussie’s ascent. In the view of Stephen Jen, a partner at London-based SLJ Macro Partners, the Aussie dollar ranks alongside emerging market currencies as being in 'grave danger' of a big correction lower. Mr Jen is far from alone. One of Sydney’s best known brokers, Bell Potter’s Charlie Aitken, also chimed in Wednesday. He believes his year-end target of $US0.9200 will be hit very quickly and give way to a level somewhere above $US0.8000. 'The Australian dollar has been one of the most obvious bubbles in the financial world,' he argues in a note. 'I remain of the view that this Australian dollar correction will get disorderly.' Deutsche Bank, the global FX 'flows monster', said those remarks were 'worthy of note'. Some of the world's other major investment banks, including Goldman Sachs and UBS, are increasingly confident the Aussie remains a sell. For a currency that last week had the ignominy of being compared with the Syrian pound, the Aussie dollar’s moment in the sun is fading. Fast."

 

From CNBC news last night, they have this headline: "The Aussie Dollar Just Can’t Catch a Break" with these highlights: "Just as the Australian dollar attempted to make a concerted rebound against the U.S. dollar this week, the prospect of further monetary easing in Australia has provided traders with another reason to dump the currency. The Reserve Bank of Australia (RBA) on Tuesday left its key interest rate unchanged but maintained an easing bias. That prompted the Aussie to give up an overnight gain of 2 percent against the dollar. On Wednesday it hit a session low of $0.9603 after weaker-than-expected Australian economic growth data, moving within sight of a 19-month low hit last month. Ray Attrill, co-head of foreign exchange strategy at National Australia Bank said 'It is still the whipping boy of the currency market.' "

 

In just checking the Wall St. Journal this afternoon, the Aussie dollar was down to $.9538.

 

Full stories at:

http://www.theaustralian.com.au/business/wall-street-journal/aussie-dollars-time-in-the-sun-is-fading-fast/story-fnay3vxj-1226657936044

http://www.cnbc.com/id/100790133

 

THANKS! Enjoy! Terry in Ohio

 

Did a June 7-19, 2011, Celebrity Solstice cruise from Barcelona that had stops in Villefranche, ports near Pisa and Rome, Naples, Kotor, Venice and Dubrovnik. Enjoyed great weather and a wonderful trip. Dozens of wonderful visuals with key highlights, tips, comments, etc., on these postings. We are now at 131,972 views for this live/blog re-cap on our first sailing with Celebrity and much on wonderful Barcelona. Check these postings and added info at:

http://www.boards.cruisecritic.com/showthread.php?t=1426474

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It will be extremely beneficial to the country if the dollar slides further. I think that about 80cents is regarded as a good level. At the end of the day, overseas travel is more of a luxury whereas a strong local economy is much more important.

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I agree Karenella. I have a friend that works in the manufacturing industry and all the workers have been asked to take a day off without pay each week until things pick up. It is OK for my friend as she is older and owns her own home but the younger people have mortgages to pay.

I bought a whole lot of US currency when it was $1.06 and $1.09.So much that my husband was wondering where all the savings had gone!

Regards Elaine.

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Exactly.

 

The idea that "highly-valued currency = good", or that "lowly-valued currency = ignominy", ignores economic reality.

 

I think that somewhere earlier on the thread I might have said Hallelujah!

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It will be extremely beneficial to the country if the dollar slides further. I think that about 80cents is regarded as a good level. At the end of the day, overseas travel is more of a luxury whereas a strong local economy is much more important.

 

Mothballs: I agree Karenella. I have a friend that works in the manufacturing industry and all the workers have been asked to take a day off without pay each week until things pick up. It is OK for my friend as she is older and owns her own home but the younger people have mortgages to pay. I bought a whole lot of US currency when it was $1.06 and $1.09.So much that my husband was wondering where all the savings had gone!

Regards Elaine.

 

Globaliser: Exactly. The idea that "highly-valued currency = good"' date=' or that "lowly-valued currency = ignominy", ignores economic reality. I think that somewhere earlier on the thread I might have said Hallelujah! [/quote']

 

Appreciate the added thoughts, comments and reactions. Clearly, economics is an interesting and changing "science". Hard to know and predict these trends, shifts. Lots depends on your own self-interest. Long-term and short-term. Personally, I like gaining these various items of info for how the economy works and plays out in our various part of the world. Never static and/or boring!!

 

From The Australian newspaper in the last three hours, they have this headline: "Aussie dollar dives below US95c amid US stimulus worries" with these highlights: "Falls have been forecast for the Australian dollar, which yesterday dived below the US95c mark to levels not seen since October 2011. Speculation that the US Federal Reserve will begin to slow its monetary stimulus sooner than expected, together with this week's weaker than expected gross domestic product data, saw the local currency fall to a low of US94.35c yesterday afternoon. The Australian dollar was the worst performer of all the G10 currencies yesterday, continuing its poor standing over the last week. The dollar has lost about 8 per cent since the start of last month. There were longer-term forecasts of more sustained declines of the Australian dollar to about US90c by the end of next year and US85c by the end of 2015. Concern that the US central bank would start 'tapering' stimulus sooner than anticipated was one of the drivers of this week's fall in the Aussie dollar. HSBC says the local currency is likely to fall further, reaching US90c by year's end and about US85c by the middle of 2014."

 

From The Age newspaper in Melbourne today, they have this headline: "What the sliding Aussie dollar means for travellers" with these highlights: "The Australian dollar is finally on the slide. In late March, one Aussie dollar would fetch about $US1.02 from an ATM in the US, or 80 euro cents. Two months later that same dollar would get you just 96 US cents, or 74 euro cents. Over that period, your purchasing power has dropped by about 6 per cent against both currencies. Where the dollar goes from here nobody really knows. If you believe this is the start of a long decline and you have an overseas trip on the horizon, you might decide to lock in at the current rate by buying foreign currency notes or traveller's cheques. You might consider a prepaid currency card. The Travelex Cash Passport (travelex.com.au), ANZ Travel Card (anztravelcard.com) and the Commonwealth Bank Travel Money Card (commbank.com.au) are among the leading candidates."

 

The Sydney Morning Herald had the headline today of "Markets Live: Dollar 'massacred' ".

 

Most of our travel costs are in U.S. dollars to Celebrity cruises, the "free" air flights with American Airlines, etc. There will be costs in Aussie and NZ dollars, but it is unclear now whether it would be smart or dumb to pay some of these cost ahead and maybe score a little gain or loss. I'm going to sit and wait.

 

Full stories at:

http://www.theaustralian.com.au/business/markets/aussie-dollar-dives-below-us95c-amid-us-stimulus-worries/story-e6frg916-1226658961468

http://www.theage.com.au/travel/what-the-sliding-aussie-dollar-means-for-travellers-20130530-2nd04.html

 

THANKS! Enjoy! Terry in Ohio

 

Celebrity Solstice Visual Highlights? From our June 7-19, 2011, Solstice cruise from Barcelona that had stops in France, Italy, Kotor and Dubrovnik, I have pull together a number of wonderful visuals of the Solstice, its features, food, entertainment, options, etc. We are now at 6,754 views for this shorter version of my larger full review of that cruise and all of the port pictures/details. Check these postings and added info at:

http://boards.cruisecritic.com/showthread.php?t=1803477

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