What is with the AUD?

Discussion in 'Currencies' started by Dogmatix, Apr 4, 2013.

  1. Dogmatix

    Dogmatix Active Member

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    Yesterday it was going great guns to 1.05, now it is barely above 1.04 on the reverse.

    Does anyone know what is causing these fluctuations? It must wreak havoc for some businesses.
     
  2. dollars

    dollars Active Member Silver Stacker

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  3. Dogmatix

    Dogmatix Active Member

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    I'm not sure if the RBA selling dollars would cause such fluctuations though. Quick rise, quick fall.

    'Interesting times' turns out to be quite a nasty curse.
     
  4. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    You probably don't watch the FX market do you? Should've seen 'fluctuations' of the AUDUSD back in 2008:

    11th July - AUDUSD Closing @ 0.9460
    11th Nov - AUDUSD Closing @ 0.6175
    Source: Google Finance

    To be fair the RBA cut AUD Cash Rate from 7.25% to 5.25% between those the time of those two rates.

    How do businesses that import and export deal with fluctuations?

    Larger exporters and importers can buy futures FX Contracts, to 'lock-in' an exchange rate over a fixed period.
     
  5. errol43

    errol43 New Member Silver Stacker

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    BOJ..is printing money like there is no tomorrow..

    Japan is having the last throw of the dice to bring its economy out of the doldrums by causing a spike in inflation.

    Interesting days ahead for currencies?

    Regards Errol 43
     

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