The Australian dollar has been falling rather sharply and is expected to plummet till about 80 US cents. An article on the website “The Advisor” reports that the fall may be a result of internal as well as external factors.
The Reserve Bank of Australia (RBA) has effected various cash rate cuts, the latest being the 7th May cut. Price of commodities produced in Australia has also come down a lot, iron ore being one such example. This has brought about a weakening demand for currency.
There is a consensus among economists that the Aussie dollar may settle somewhere between 70 and 80 US cents by the end of 2013. This shall however augur well for the Australian economy.
It will give boost to exports and will aid local manufacturers. Home construction and renovation industry may also benefit at large from the cash rate cuts.
You can read the original article here.
Do you think that there will be any further cash rate cuts?
We are all good people but certainly not without our grey areas. When these “grey areas” overpower us we become less productive, one way or the other. Jeff Haden for the magazine Inc. tells us about the 8 must-avoid mistakes for achieving greater productivity.
A weakening Australian dollar has made it easier for foreigners to avail our tourist spots. Michael Yardney for the Property Update reports that the signals from global tourism had become frail in the light of a buoyant Aussie dollar.
Sydney’s middling properties, ranging from $500,000 to $1.5 million, could benefit most in the year 2013. Larry Schlesinger for the Property Observer says that they could rise as much as 10% in prices, outperforming the First Home Buyer segment and the Prestige Market.
The Australian Finance Group (AFG) has processed mortgages worth $3.6 billion in May. An article on the AFG website reveals that the May figures are a neat 13% above the $3.2 billion recorded for April. It is worth noting that mortgage sales in April had already smashed all past records and so further improvement in May is certainly a cause for delight.
A few major housing grants have changed all across the country. Seeing the Goods and Services Tax weighing down home owners, the government came up with the First Home Owner Grant in the year 2000. It offered $7,000 to FHBs looking to buy a new or an existing home, says Emma Sorensen for the website realestate.com.au.
