AUD drops to 0.55

Discussion in 'Currencies' started by openeyes, Mar 19, 2020.

  1. openeyes

    openeyes Well-Known Member Silver Stacker

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    That is really interesting. I really cant fathom how that can be the case. I assume that this industry has not as yet been affected. Hopefully some industries can continue to operate with little interruption. The collapse in BHP and RIO share prices seem to suggest that there is more to this picture albeit the copper price has impacts to them.
     
  2. Slimey

    Slimey Well-Known Member

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    I am in Singapore on holidays and have seen the exchange rate drop from 91cents to 81 cents in 3 weeks. Thank god I changed most of my money when I arrived.
     
  3. openeyes

    openeyes Well-Known Member Silver Stacker

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    And in a flash we are back at .5775 - that's huge in the space of 3 hours or so.


    upload_2020-3-19_18-1-25.png
     
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  4. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Regardless of the current price, I won't be optimistic on base metals, unless other countries take up the slack.

    The reason being the Coronavirus might have changed the Chinese mindset. Before, they were pursuing construction and infrastructure, building the biggest airport, building skyscrapers even in the middle of rice fields, building high speed rail lines to remote villagers and mountains.

    Moving on, they will focus more on technology and healthcare services.
     
  5. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    The Australian Reserve bank has just announced a .25% emergency interest rate cut and it has announced that it will engage in quantitive easing, I would guess that this is the reason for the AUD fall.
     
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  6. 66rounds

    66rounds Well-Known Member Silver Stacker

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    If silver supply falls, how will we even get our hands on physical? It'll be the end of silver.
     
    Last edited: Mar 19, 2020
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  7. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    The price will have to adjust upwards. Why don't gold go out of stock? Because it's expensive, so people can't buy too much of it. Silver is now out of stock because it's too cheap.
     
  8. 66rounds

    66rounds Well-Known Member Silver Stacker

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    If the price corrects you will no longer be buying, you will be selling. Self defeating prophecy.
     
    Last edited: Mar 19, 2020
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  9. Silver260

    Silver260 Well-Known Member Silver Stacker

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    Exactly. The market had been factoring it in all day. Expect it to most likely drift back up towards 60c?
     
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  10. Tin Can

    Tin Can Member

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    I purchased some coins from a US dealer in early February priced in USD. The items were not delivered (UPS problem), so the sale price was refunded this week.

    With the fall in the AUD during that 5 week period, the AUD refund amount was more than the AUD sale price. Is this a silver lining?
     
  11. bubblebobble2

    bubblebobble2 Well-Known Member Silver Stacker

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    Not when you pay with PayPal... they take most of your profits from AUD fall... eitherway, you're still screwed
     

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