Australian dollar to plummet?

[pologti18t]

Bears circle Goldilocks as Aussie is tipped to slide

If it come true it could make it interesting with regards future car prices.

[Buller_Scott]

One can only hope that the aud plummets against the usd. fingers crossed (selfish personal reasons).

[wai]

Isn't it amazing. First we had the economists bleating that the dollar was valued too high. They get their way and it comes down in value. Now they are bleating that it is going to go too low.

Funny how we don't hear bleating from the US that their dollar is going to increase in value.

What a high dollar did was give us the best chance we had of getting some semblance of a manufacturing industry back up and running. What we now have is low labour costs, but not enough value in our dollar to be able to go out and actually equip manufacturing plant.

So we have a low dollar AND we do not have the value in overseas currencies to purchase the tooling to make our manufacturing competitive. The result is a lose:lose outcome. Of course, those willing to speculate on how low it will go will make a killing.

What we need is someone to go on a buying spree for Australian dollars. This could be done really cheaply now. Then when the value goes up because "someone" is buying, offload the dollar and make a handsome profit. This will make the economists have kittens.

But we HAVE to listen to economists. After all, look what they gave us...the Global Financial Crisis. With a gift like that what else could we ever want.

[Tarmac]

Sucks for online shopping. Good for local manufacturing.......unfortunately a lot of local manufacturers are useless. Which is annoying.

[THE_EGG]

Sucks for me as I'm travelling to the US at the end of the year...There goes my plans to get cheap stuff.... yes I am thinking selfishly

[ill0gitech]

One can only hope that the aud plummets against the usd. fingers crossed (selfish personal reasons).

I work for a US company. 100% with you on this.
Though I will curse it if I have to travel overseas on my own dime

[Finance_Analyst]

If I really knew the answer to this question, I would not be wasting my time on this forum but trading FX futures, making millions and selling my VW for something better

[ill0gitech]

Well at least you would only do it if you knew the answer, as opposed to the other guys who take massive gambles with investor dollars

[Njay]

i think its great if manufacturing picks up, i'm recently graduated chemical engineer and hoping it will open up some more job opportunities

[brad]

What a high dollar did was give us the best chance we had of getting some semblance of a manufacturing industry back up and running. What we now have is low labour costs, but not enough value in our dollar to be able to go out and actually equip manufacturing plant.

.

I'm not sure how you work that out. High dollar makes imports cheaper. Given the ease & speed of transferring information between countries it is cheaper to get stuff fabricated overseas than make it here.

A stair / railing / balustrade business I used to sub-contract for in 2007 had ~60 employees plus contract workers plus an Australian manufacturing / fabrication facility. A few years back he got rid of the tradies/fabricators/machinery & factory, bought a warehouse/office & retained his sales team, check-measurers, draughtsmen, installers & warehouse personnel. He sends all the drawings overseas & gets it fabbed over there.

Sure a low dollar will bump up the capital spend but that's long term investment & not operating cost