High AUD

[macaroonie]

For any economists out there, the AUD has just sky rocketed over the last 3 years. Do you think it will ever come down to parity again with the SGD? Or is this a new reality?

Thank you very much

[beppi]

You need an astrologer more than an economist to answer this question!

[macaroonie]

Beppi! hahah what a good reply! Doesn't help but love it anyway

[beppi]

It's the truth!

[Mad Scientist]

AUD will remain high as their commodties are in demand . Most of it goes to China. One of their indicators is mining, Rio Tinto is an indicator of how the AUD perform.
Unless China slow down to lower than 7% GDP then AUD will come down.
As AUD is one of the trading basket of the world currencies, it will be there for a wee while
Wait of the next election if JG stays or Tony takes over. This is going to be soon as most poll does not want JG to stay

[offshoreoildude]

Some argue the AUD is becoming one of the few currencies of last resort....

[Strong Eagle]

As goes China, so goes the Australian dollar. Tell me what's going to happen with the Chinese economy.

[JR8]

As goes China, so goes the Australian dollar. Tell me what's going to happen with the Chinese economy.

Well, it's already going down, innit!

[Strong Eagle]

As goes China, so goes the Australian dollar. Tell me what's going to happen with the Chinese economy.

Well, it's already going down, innit!

That it is... I found the statement "Some argue the AUD is becoming one of the few currencies of last resort...." to be somewhat unbelievable... small population, focus on extraction industries... looks a lot more like a speculative currency to me. Like it or not, the US dollar is still the currency of last resort.