When the AUD ploughed down from +109 down past sub-95 a few months ago, no one was interested how it happened, they were just happy of the relief! Same thing happened in Brazil about 8 months ago with their 'Real'.. Today, Brazilians are rioting in the streets over skyrocketing inflation. :/ The RBA will have some explaining to do in the coming months...
Not too sure of your perspective here but AUD going up causes silver price to go down - which is not a good effect
From the perspective of someone buying, rather than selling, silver, it is obviously good. I'm very happy about it.
I'm going to disagree with you there hammer, come to the defence of the RBA and state that the fall in the AUD has not been brought about by any RBA decisions in the main, but by events in our trading partnerships, esp china. The RBA is not a big fan of forex intervention - unlike the US, UK, Japan or NZ.
That's cool. I just remember hearing an RBA official saying on ABC Radio National a few months back (during the height of the complaints), that; to paraphrase "the AUD's sole purpose is to facilitate trade, and the RBA will supply as much currency as needed to facilitate trade" a few months later the AUD started falling.. http://www.abc.net.au/news/2012-11-07/rba-might-be-printing-money-for-foreign-banks/4358864 Having said that, it could be just trench-talk from a lackey... the RBA have always relied heavily on interest rates to influence exchange rates... and they drop their cash rate to a record low just recently
I remember vaguely one comment or speech made by the governor of the RBA indicating that a lower AUD would be beneficial to some aspects of the Australian economy, but mostly, if my alcohol-dudded memory serves me correct, the RBA tries to indicate it will not interevene in forex rates. Compare that to the RBNZ's governor wheeler who has stated on many occasions that they will actively take steps to reduce the value of the Kiwi. Just as his Japanese counterpart has said. What is ironic is that neither have been overwhelmingly succesful and the AUD has taken a bigger hit than the Kiwi. Just shows how useful a reserve bank is doesn't it? :lol: Where's my sarcasm smiley?
A couple of years ago if gold fell so did the AUD, lately though........... I think it was because I had more money to spend on gold then. Now....
The flight to quality make the au, real and others to fall. When the qe begin the tappering and the % in the treasure bonds in usa go up all the others (au, cad, real) will fall because the big money will exit the carry trade. In the last months a lots of big money exit the carry trade. And the metals gold, silver will go down too. (nice time to stack) because after it the inflation in usa will begin and the metals will go up again.
