Wheres the Aussie Dollar Going

[midfielder]

A vid from Inside Business ... with SAV SAVOURI

This guy makes sense to me and it paints a rather Rosy picture for Australia and our region but Europe & the US in for a rough ride...

He predicts the Aussie to reach $ 1:70 against the US at round about the 2 minute mark..goes for six minutes..

http://www.abc.net.au/insidebusiness/content/2011/s3511919.htm

 

[ryan]

If it can be at $1.70 by next week I'll be a very happy camper verhead:

 

[scottmac]

If it can be at $1.70 by next week I'll be a very happy camper verhead:

September will be fine thanks.

 

[Mumbles]

Can be $5 but it won't matter because you will be working for Chinese companies on minimum wages.

Our false sense of security is fed from a dual economy. The strong natural resource boom is hiding the massive manufacturing, retail and service industry recession.

If the red head doesn't get the flick this year we'll drop under 90 cents and be left with a $22 billion debt.
Although 85 cents is our sweet spot for growth. $22 billion debt isn't

Just an opinion.

 

[midfielder]

Can be $5 but it won't matter because you will be working for Chinese companies on minimum wages.

Our false sense of security is fed from a dual economy. The strong natural resource boom is hiding the massive manufacturing, retail and service industry recession.

If the red head doesn't get the flick this year we'll drop under 90 cents and be left with a $22 billion debt.
Although 85 cents is our sweet spot for growth. $22 billion debt isn't

Just an opinion.

Tend to agree but Sav [the guy on the vid] says no.... we will just get stronger as does the rest of Asia...

 

[Mumbles]

I understand the basis of his theory.
Australia is considered to be a stable and well managed economy but that reputation is riding on the back of 20 plus years of competent government. Both sides.
Now we have incoherent muppets no matter who you vote for which will errode confidence in our economy over time. Assuming we have a strong leadership team emerge in the next few years I guess a high dollar is possible.

I agree that China's fast growing internal consumer market is full of opportunities for Australian businesses.
Most Aussie businesses only see China as a source of cheap low quality products to which they can add super profits and rip off local consumers. Products many Chinese wouldn't buy themselves. Well the Internet and it's online stores are quickly exposing the truth now.

The new China seems to be adopting a similar buying culture to Japan 20/30 years ago when wallets were full and imported goods from Germany, USA and Australia were seen as high quality and demanded a high price. A status symbol in many circumstances.
There's a great opportunity begging to be capitalized by what's left of Australian manufacturing.

Retail and service can be refreshed through tourism targeted at China. Like many other visitors though they don't want to walk into a store only to see racks of goods made in China! Can get that at home for a fraction of the price.

Just an opinion