Quote ="someonehasmyname"Are you having a laugh!!! Before I go on I am a Brit living in Sydney.
The reason why the AUD has strengthen so much over the last three years is due to China. The resources sector over here are feeding China's never ending energy and raw material needs. In fact, I know of two things for certain as colleagues are in the know and work with clients in these sectors.
- The mining companies can not extract the raw material fast enough to meet China's demand.
- If you go to the Central coast (100km north of Sydney) you will see the longest cargo ship queue in the world (visable from google earth aswell. These are all empty Chinese cargo/coal ships waiting to go into Newcastle for their load. Newcastle Ports just can not fill up the damned things fast enough!! This is the same of all Ports around Australia.
In addition to this the reserve bank of Australia have kept interest rates low, and have historically not encouraged a debt society. Together with exports remaining high due to the growth of China this ensured that Aus did not go into reccession, and suffice to say that the Australian Dollar is now a major player in the world banking due to the strength of it.
When I got here in 2006, it was 3.04GBP to the dollar. Now it is 1.54, and I am loving sending all my spare AUD's back to pay off my UK motgage with my place in London. It is free money!!!'"
spot on the money that post
we are booming now ..resources prices are at the highest theyve ever been and our currency the highest its been since it was floated ...
from a low under 50 cents to the USD its now 1.04
