We should have all invested in Australian currency!

goingbroke

The Aussie, as the currency is known, has jumped almost 20 percent against the US dollar since June to post-financial crisis highs -- stunning foreign visitors who were expecting more value from the greenback.

Text

ProofCollection

Earlier this year my friend who works at GS told me they were having their clients invest in currencies of countries who were exporting their currency - Australia being one of them. Clearly that has been a great strategy. I need to call him and see if that's still the case.

57loaded

<< <i>Earlier this year my friend who works at GS told me they were having their clients invest in currencies of countries who were exporting their currency - Australia being one of them. Clearly that has been a great strategy. I need to call him and see if that's still the case. >>



exporting does not equal selling?

debsbuying

Thats funny,you guys are buying Aussies and as an Australian i am buying USD,you guys forget that not that long ago you had a great country,and it wont be that long before its great again,have faith,and i am stacking greenbacks

goingbroke

there does appear to be a contest that is going on between countries across the globe to see who can devalue their currency the most and the fastest.

It appears that the US is winning the race to devalue its dollar. The stock market seems to be leading the cheer for this catastrophe to happen. As the dollar declines, the goods manufactured by US multinational companies are more competitive overseas. Also, repatriation of foreign currencies back into US dollars can be a profitable endeavor, enhancing corporate profits as our money weakens. Oil back over $80 a barrel is another byproduct of a weak currency. The US consumes half the gasoline in the world. We’re pretty much a captive market for the foreign oil-producing nations. As our money’s purchasing power declines, they demand more dollars to make up the shortfall – because they can! Is higher oil and a weaker dollar good for the average American?

According to the Commodity Futures Trading Commission the bullish sentiment for the US dollar is close to 0%. We, as Americans, can only hope that sentiment acts as a contrary indicator and the dollar starts to rally soon. Gold is giving all global currencies a thumbs down. Central Banks across the globe are trying to devalue their own currencies, by printing more green, red, or orange dollars in their own countries' flavor and using their freshly minted currency as bailout money. With the US Dollar as the global reserve currency, we seem to be winning the race currently, but is this really what we want to do? I think not, but others are rejoicing.

jmski52

PMs are good enough for me. They're gonna devalue them all, so why try to guess which one is devalued the least?

secondrepublic

<< <i>Thats funny,you guys are buying Aussies and as an Australian i am buying USD,you guys forget that not that long ago you had a great country,and it wont be that long before its great again,have faith,and i am stacking greenbacks >>



Smart move.

The U.S. will bounce back... and those who bought at the bottom, will be rewarded.

Justacommeman

<< <i>

<< <i>Thats funny,you guys are buying Aussies and as an Australian i am buying USD,you guys forget that not that long ago you had a great country,and it wont be that long before its great again,have faith,and i am stacking greenbacks >>



Smart move.

The U.S. will bounce back... and those who bought at the bottom, will be rewarded. >>



I'm not sure anybody in this thread said they were buying the Aussie dollar here.

Smoe of us bought the Aussie currency long ago and are up well over 30% in accrued appreciation against the dollar PLUS compounded interest at an ave rate of over 5.0% per anum. Over several years it's a pretty big score. The Aussie dollar's all-time high is 1.49 against the dollar (1973). It's currently at .97

The Aussie jobless rate is 5.1%

I forgot, how much interest does the $USD pay? Any chance of it paying any interest in the near future?

The problem secondrepublic, where is the bottom? I do agree the Aussie dollar is over heated and needs a rest. A deep US stock market pullback could derail the Aussie dollar as well.

DoubleEagle59

Don't forget the strength of the Canadian dollar.

Both Canada and Australia are viewed as strong natural resource countries.

I think buying the Aussie and/or Canadian dollar is a proxy purchase for commodities.

Bear

Lets see, I will take two koala bears, one kangaroo and 5 dingoes to go.