<blockquote rel="wizardofOz">Ano ba yung reason ng paghina na Aussie dollar?</blockquote>
- Aus economy is not doing well / There is not much srtralia to export than minerals.
Aus rely mostly on Mining export
Biggest customer is China
China growth was reduce meaning they don't need much minerals for development
Competition lowers the price of minerals being exported inclduning Gas
UAE does not have plans to reduce gas production therefore more supply in the market causing huge competition for lower price.
- there are more Aus companies closing/reducing headcount now compare way back in 2008-2009 (GFC)
Example is the reduction of employee / closing of car manufacturing
- more companies in aus trying to outsource job in Asia (this is from perosna lobervation) specially in IT. Example is Macquarie Bank - they oursource the It or move most of the IT services in the Phils. Other IT companies are trying to move their services to India or Phils.
Some are moving back to US.. since US implement new policy for tax break if companies bring back jobs to US.
Even if they lower AUD, still cheaper to outsource services in Asia.
Lowering AUD sometimes may cause more harm than good
Gov now starts cutting expenses and benefits
Increasing pension to 67yrs old
planing for a co-payment on health care
Aust government is letting the house property prices to rise as one of the remaining catalyst to
Since low AUD - more foreign can bring more money to Aus and buy more property and will make it harder for new migrant or next gen to get in to buy property.
Only promising sector I can see doing well right now in Aus is healthcare
higher USD means higher conversation for profit