pound versus AUD

oneeye1

can someone please explain why the pound is so weak against the aud and what will make it reverse.

thank you

ladylouise62

It's more that the AUD is strong against loads of currencies.
Australia seems to have missed out on the recent 'fun' that so many countries have been involved in and has quite a strong jobs market as well as strong mining business which is held up high by providing stuff like coal and iron to China. Also, most countries would 'fiddle' to get the value down but Australia is a bit laissez-faire at present hoping that it will self-correct... I think that's it, I heard a bit about it a couple of weeks ago and that's what I remember

hcb42

I wish it would alter - wanted to put a visa app in...

Thrugelmir

Interest rates.

Aussie base has been at 4.75% since last November.

Average mortgage rates are around 7.79%,

So the grass isn't greener.........

PasturesNew

Thrugelmir wrote: »

Interest rates.

Aussie base has been at 4.75% since last November.

Average mortgage rates are around 7.79%,

So the grass isn't greener.........

Sounds great for savers...

hcb42

Tax is higher as well.

I know the grass isnt greener, as I lived there for two years.

right now though I would sell my house (40% ltv) and would have the capital to buy a garden shed over there.

HAMISH_MCTAVISH

The Australian government stepped in early when the GFC hit, with massive stimulus to the housing market and wider economy, which prevented a full blown crash and therefore recession.

They doubled the FTB grant, lent their AAA ratings to the banks to ensure continued funding, had the central bank buy RMBS, and sent stimulus cheques to every household in the land.

No crash = no recession = higher base rates = stronger currency.

It ain't rocket science.

HAMISH_MCTAVISH

And as to when the UK pound will climb to enable expats moving there to buy something more than a garden shed...... Not until UK employment, wider economy and housing market is in a strong recovery, and only then will UK base rates rise significantly.

rumdiddlyum

wish i had tried at school then i would have a good enough job to go to australia but would deffo be scared about the giant spiders and mr ts craziest fools

sabretoothtigger

Australia has coal, gas, oil, gold and Neighbours

We have a bit of oil (pretty sure we are net importers ) and xfactor


They got more to sell then we do so their currency is more in demand

pound is so weak against the aud

2012 is our last hurrah after we get foreigners coming to the Olympics, we got nothing left to sell :eek:

what will make it reverse.

When commodities are less needed then unique british ideas like dyson hoovers which the chinese have cloned unfortunately

Graham_Devon

HAMISH_MCTAVISH wrote: »

The Australian government stepped in early when the GFC hit, with massive stimulus to the housing market and wider economy, which prevented a full blown crash and therefore recession.

They doubled the FTB grant, lent their AAA ratings to the banks to ensure continued funding, had the central bank buy RMBS, and sent stimulus cheques to every household in the land.

No crash = no recession = higher base rates = stronger currency.

It ain't rocket science.

So the answer to increase the pound is to hand cheques out to everyone (or should we just say homeowners?) and to send house prices spiralling through stimulus?

That way we shall have a healthy economy and a sought after pound?

Do you think....maybe...there is a little more to it than that?