Last year, i was contemplating on opening a AUD fixed deposit, but interest rates were dropping, AUD/USD rate was also peaking. Thank GOD i didnt. Recent events have peaked my interest again in the Aussie Dollar though.
AUD/USD fell to its lowest level in more than 2 years, home-loans are slowing down and it does not look like a safe-haven currency anymore as their interest rate advantage narrows. It has taken surprisingly long for this correction to happen. I believe this is because of speculation around the US Feds announcement that it will reduce stimulus this year.
The only things going for Australia were demand for its Housing and Commodity (mainly from China). This even helped Australia escape a big economic bust in 2008, however things are looking bad now. China is slowing down definitely but still growing at a slower pace...and i hate using the terms "hard or soft landing".
Australia's labour costs are ridiculously high, their housing bubble has BURST and their commercial real estate can only go down from here. SO have a look at the Real Home Price Index Chart over a period of more than 100years. Aussie housing market has been truly sitting in a bubble waiting to burst. At the risk of sounding like Alessio Rastani, yes i do dream of recession, make things cheaper for the average investor like me.
AUD/USD fell to its lowest level in more than 2 years, home-loans are slowing down and it does not look like a safe-haven currency anymore as their interest rate advantage narrows. It has taken surprisingly long for this correction to happen. I believe this is because of speculation around the US Feds announcement that it will reduce stimulus this year.
The only things going for Australia were demand for its Housing and Commodity (mainly from China). This even helped Australia escape a big economic bust in 2008, however things are looking bad now. China is slowing down definitely but still growing at a slower pace...and i hate using the terms "hard or soft landing".
Australia's labour costs are ridiculously high, their housing bubble has BURST and their commercial real estate can only go down from here. SO have a look at the Real Home Price Index Chart over a period of more than 100years. Aussie housing market has been truly sitting in a bubble waiting to burst. At the risk of sounding like Alessio Rastani, yes i do dream of recession, make things cheaper for the average investor like me.
Thank you Hannah for your interest. Please send me your website address, i will check it out. (hmshakib@gmail.com)
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