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Microstock Photography Forum - General => Off Topic => Topic started by: litifeta on October 26, 2008, 17:12

Title: How low will the Aussie go?
Post by: litifeta on October 26, 2008, 17:12
Last night it got hammered, dropping to .613 USD.

Saw charters on the news this morning suggesting it can fall to below .40 USD.

So 2.5 sales for each stock sale ... Yah!

Will not be too many Australians heading overseas soon however.
Title: Re: How low will the Aussie go?
Post by: leaf on October 26, 2008, 17:48
yeah, the norwegian kroner is really changing too compared to the US $$ ... it is like getting a 40% raise.. very nice.
Title: Re: How low will the Aussie go?
Post by: leszek on October 26, 2008, 17:50
Below 0.4 USD ? Yes, I reckon it is possible. Australia and Australians need a reality check. Nominal exchange rate is about 2x as high as the real purchasing power of the Aussie dollar - just look at the prices of identical items in USA or Europe. Gives a real incentive to start shooting more though - as you just said  ;D
Title: Re: How low will the Aussie go?
Post by: litifeta on October 26, 2008, 22:38
Yeah but I can kiss the new 5D goodbye. Would have been nice if I could have prepaid for it when the dollar was 98 cents a month ago.
Title: Re: How low will the Aussie go?
Post by: travelstock on October 27, 2008, 08:58
Below 0.4 USD ? Yes, I reckon it is possible. Australia and Australians need a reality check. Nominal exchange rate is about 2x as high as the real purchasing power of the Aussie dollar - just look at the prices of identical items in USA or Europe. Gives a real incentive to start shooting more though - as you just said  ;D

Real purchasing power is only a very minor a factor determining exchange rates. The people who are tipping .40 are the same ones that were forecasting that the dollar would achieve parity with the US$ just 2 months ago. It was commodities prices and high relative interest rates that were driving the dollar to its highs.

Its bad financial news that's driving the dollar down - and has nothing to do with the relative strength of the Australian economy. Investors are moving their capital into the so-called safe currencies - Japanese Yen, the Swiss Franc and the US$. Most other currencies will fall in the meantime. Still I doubt that we'll go anywhere near .40 - I certainly hope not! I'm one of those Aussies out traveling at the moment and am due to head to the US in the next week. Lucky I'm earning enough $US to cover most of my expenses!