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Wednesday, August 07, 2019 1:42:12 AM
Australian dollar decline holds best hope for economy to escape trade war fallout
Australia May Well Be the World’s Most Secretive Democracy
PM By business reporter David Taylor
Updated about 7 hours ago
Photo: The Australian dollar is trading very close to ten-year lows, well below 70 US cents.
(Giulio Saggin, file photo: ABC News)
Market watchers are growing increasingly worried about the escalating trade war between the United States and China.
Key points:
* The Australian dollar has been within 10 basis points of its decade low of 67.41 US cents, set in a flash crash on January 3 this year
* A 20 per cent slump in iron ore prices has contributed to the Aussie dollar's slide
* Economists say the lower dollar should provide a boost to export earnings, especially in industries like tourism and education
US President Donald Trump vowed last week to impose 10 per cent tariffs on the remaining $US300 billion ($441 billion) of Chinese imports that are not currently subject to tariffs from the September 1.
China has since retaliated by devaluing the yuan to its lowest level in more than a decade.
Financial markets have not taken the news well, sending share markets across the globe sharply lower and pushing the price of an Australian 10-year bond — considered a safe haven asset — to a record high.
As a result, the yield (or percentage return) on the 10-year bond has fallen to a record low.
[...]
Australia's trade surplus rose 30 per cent in the three months to June, meaning more money is coming into the economy than going out.
American tourist Mary Schrader is in Uluru with her family enjoying some of the best experiences Australia has to offer.
Photo: Mary Schrader is visiting Australia from the US and says the lower Aussie dollar
means she can spend more. (Supplied: Mary Shrader)
"Oh my gosh, it's just so beautiful, and the people are lovely, and it's just gorgeous," she said.
"It's cultural, it's spiritual, there's nature, there's so much to do, and there are many active adventures.
"It's kind of a little bit of everything we love."
Ms Schrader has already climbed the Sydney Harbour Bridge.
She told PM she would spend even more in Australia if the US dollar continued to rise against the Australian dollar.
https://www.abc.net.au/news/2019-08-07/australian-dollar-decline-holds-best-hope-for-economy/11389028
Any benefit Australia gets out of Trump's trade war has me feeling a bit guilty, yet it's good if it brings more of you down (or up, if you can envisage that) here.
Australia May Well Be the World’s Most Secretive Democracy
PM By business reporter David Taylor
Updated about 7 hours ago
Photo: The Australian dollar is trading very close to ten-year lows, well below 70 US cents.
(Giulio Saggin, file photo: ABC News)
Market watchers are growing increasingly worried about the escalating trade war between the United States and China.
Key points:
* The Australian dollar has been within 10 basis points of its decade low of 67.41 US cents, set in a flash crash on January 3 this year
* A 20 per cent slump in iron ore prices has contributed to the Aussie dollar's slide
* Economists say the lower dollar should provide a boost to export earnings, especially in industries like tourism and education
US President Donald Trump vowed last week to impose 10 per cent tariffs on the remaining $US300 billion ($441 billion) of Chinese imports that are not currently subject to tariffs from the September 1.
China has since retaliated by devaluing the yuan to its lowest level in more than a decade.
Financial markets have not taken the news well, sending share markets across the globe sharply lower and pushing the price of an Australian 10-year bond — considered a safe haven asset — to a record high.
As a result, the yield (or percentage return) on the 10-year bond has fallen to a record low.
[...]
Australia's trade surplus rose 30 per cent in the three months to June, meaning more money is coming into the economy than going out.
American tourist Mary Schrader is in Uluru with her family enjoying some of the best experiences Australia has to offer.
Photo: Mary Schrader is visiting Australia from the US and says the lower Aussie dollar
means she can spend more. (Supplied: Mary Shrader)
"Oh my gosh, it's just so beautiful, and the people are lovely, and it's just gorgeous," she said.
"It's cultural, it's spiritual, there's nature, there's so much to do, and there are many active adventures.
"It's kind of a little bit of everything we love."
Ms Schrader has already climbed the Sydney Harbour Bridge.
She told PM she would spend even more in Australia if the US dollar continued to rise against the Australian dollar.
https://www.abc.net.au/news/2019-08-07/australian-dollar-decline-holds-best-hope-for-economy/11389028
Any benefit Australia gets out of Trump's trade war has me feeling a bit guilty, yet it's good if it brings more of you down (or up, if you can envisage that) here.
It was Plato who said, “He, O men, is the wisest, who like Socrates, knows that his wisdom is in truth worth nothing”
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