1 / 4

The Australian Dollar 1. US Interest Rates

The Australian Dollar 1. US Interest Rates

gaura
Download Presentation

The Australian Dollar 1. US Interest Rates

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Australian Dollar 1. US Interest Rates The Fed has kept US interest rates low by buying $85bn of bonds every month. Although delayed by debt ceiling discussions & government closure, this support might start to be withdrawn in 2014. If so, US interest rates are likely to increase, driving the USD up against other currencies. 2. China & Commodities China is undertaking market reform to control a credit boom & avert a property bubble. Growth in China has slowed; the longest period below 8% for 20 years. Commodity prices have fallen sharply since mid-2011 & any further price falls could be reflected in a weaker Australian dollar. 3. Australian Economy The federal election has provided a boost to confidence, however it remains to be seen whether the economy can adjust to any slowdown in mining investment. AUD interest rates have been falling, but seem to have stabilised for now. Any more cuts would weaken the Australian dollar. AJSS Conclusion: Protect against the possibility of a weaker Australian dollar in 2014.

More Related