Exporters expect the Australian dollar to fall, and importers expect the Australian dollar to rise. As ordinary people, as long as every Australian dollar can buy an extra soup in a foreign tourist city when traveling abroad on a plane, that is good news. Therefore, most Chinese Australians who travel abroad frequently hope that the Australian dollar will stay strong. It's just that the good days of converting every Australian dollar to one dollar are over, and the Australian dollar even fell below the 90 sen bottom line last night. It is estimated that the Australian dollar has entered free fall, and the day of a straight decline is really not far away.
The United States kicked the Australian dollar down 90 cents:
The Australian dollar has been hovering above 90 sen these days, as the market is counting on the Fed to keep the US in urgent need of maintaining a low interest rate policy for "a considerable period of time" in the future. Low interest rates in the United States will depress the value of the US dollar, which is relatively too high for the Australian dollar. However, the market is worried that the United States will keep interest rates low, but change its concept of "a considerable period of time." In other words, the market judges that the low interest rate policy of the United States will change in the near future, and interest rates will increase.
Yesterday the Chairman of the Federal Reserve announced that it will continue to maintain low interest rates for "a considerable period of time."
Yesterday the Federal Reserve announced its monetary policy to the market as usual. Contrary to market expectations, the Fed not only maintained a low interest rate policy, but also continued to announce that this policy would remain for "a long time."
The Australian dollar fell:
It stands to reason that the United States continues to maintain a long-term low interest rate policy, which will encourage the Australian dollar to rebound. But the market decided to abandon the Australian dollar. The Australian dollar fell by 90 sen yesterday, reaching its lowest level since March 3 at 12 sen.
The Australian domestic economic situation dominates the Australian dollar's trend:
For a long time, the market has been concerned about the recovery of the U.S. economy, which will lead the U.S. into an era of interest rate hikes, thereby pulling up the dollar. However, after the US interest rate policy became clearer, the market found that the domestic situation in Australia was the stumbling block for the Australian dollar.
On the one hand, Australia’s high housing prices have led the Reserve Bank to repeatedly warn that it may use interest rate increases to suppress housing prices. However, on the other hand, Australia's domestic economy is facing difficulties. A large number of large companies have closed their doors for speculation, raising the unemployment rate and increasing uncertainties about the economic outlook. Therefore, the market estimates that before March to May next year, Australia is unlikely to have an interest rate hike arrangement. Therefore, the domestic situation in Australia determines that the value of the Australian dollar against the US dollar is getting lower.
The Australian dollar is over:
Even if the light is reflected back, it is only a matter of time. Therefore, if you plan to travel abroad or buy online overseas, take advantage of the exchange rate and place an order for air tickets, hotels, or buy coats or bags.
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