It's All Starting to Look Glum for the Australian Dollar

[Tarkett]

Bloomberg
Subscribe



Markets
It's All Starting to Look Glum for the Australian Dollar
By
Ruth Carson
May 16, 2019, 4:30 PM EDTUpdated on May 16, 2019, 9:26 PM EDT

• Nomura recommends shorting the currency amid political risk
• AMP Capital sees Australia’s dollar falling to 65 U.S. cents

Photographer: Brent Lewin/Bloomberg
Australia’s dollar is under siege from an upcoming election, a trade war and a faltering economy.
Nomura Holdings Inc. advocates a short position ahead of Saturday’s general election. QIC Ltd. has advised pension-fund clients to sell the Aussie against the dollar and yen, while AMP Capital Investors is equally pessimistic. The currency has declined around 2.2% this month to under 70 U.S. cents, the worst performer among Group-of-10 peers, as optimism that trade frictions will be resolved evaporated.

 

[Tarkett]

The Australian dollar has fallen through a key level as the global economy stumbles.
The dollar is now worth just 69.4 US cents, following the news that President Donald Trump’s trade war is spiralling into a new and dangerous phase.

 

[congo9]

OK. This one reflects the strength of Aussie dollar. It will make export cheaper. Support more export at the same time induce more tourists dollar.

 

[rocket]

What happens to Australia property owners?
Value drop ?

 

[Tarkett]

What happens to Australia property owners?
Value drop ?

Australian property sales are around the lowest point in two decades, primarily driven by falling property prices and tighter lending conditions. Sales have fallen most dramatically in Melbourne and Sydney, but other capitals have also seen a fall over the past year.

Fewer properties being bought and sold has significant impacts on the real estate industry, but also reverberates through the broader economy, notably via less activity for builders, tradespeople and retailers.

Australian property sales are close to record lows

Time to buy OZ property now.Good luck if you owned or still serving the mortgage loan.

 

[steffychun]

Is that why @Leongsam is in New Zealand?

 

[krafty]

you all talk like experts, i better go away...lol

 

[syed putra]

This is the result of shutting out foreigners from buying australian properties unless its a newbuild homes.

 

[Leongsam]

This is the result of shutting out foreigners from buying australian properties unless its a newbuild homes.

That rule has been around for decades but it did not stop the huge decade long property boom.

 

[syed putra]

That rule has been around for decades but it did not stop the huge decade long property boom.

I thought it was only imposed recently.
Anyway, this is for reference below.
Australia forced sale of 25 homes with China buyers
Chinese owned almost half of properties found to have broken foreign investment rules since 2015


Sidney Leng
Published: 9:03am, 8 Feb, 2017



11

Sydney residents walk past a newly completed apartment development in Sydney's inner-city suburb of Zetland. In 2015, China overtook the US as the largest source of foreign investment in Australia, largely driven by spending on real estate. Photo: Reuters
Australia has forced the sale of properties worth more than A$107 million (HK$631 million) purchased by overseas buyers for breaching its laws since 2015 , and 40 per cent of the properties belonged to wealthy Chinese.
In a statement from Treasurer Scott Morrison on Tuesday, the Australian government listed 15 properties that it found did not meet the country’s rule on foreign investment, bringing the total number of homes forced to be sold to 61 – 25 of which had been originally bought by Chinese.
Australian law doesn’t allow foreigners to invest in secondhand homes. For new homes, foreign buyers have to get approval from the country’s foreign investment review board.


‘The Chinese buyers are already disappearing’: Australia taxes foreigners as home affordability bites
The crackdown, which was initiated in early 2015 when prime minister Tony Abbot was in office, was partly a response to the bloating property market, with surging home prices that many locals blamed on a property shopping spree led by Chinese investors.
In Sydney and Melbourne, the country’s two biggest cities, home prices have increased by more than half since 2009, according to Australian government statistics.
In 2015, China overtook the US as the largest source of foreign investment in Australia, largely driven by spending on real estate.

The most expensive property the Australian government has put back on the market is a 16,000 sq ft mansion that Xu Jiayin, chairman of the Evergrande Group, purchased for A$39 million in 2014. Photo: AP
Share:​

SUBSCRIBE TO US CHINA TRADE WAR
Get updates direct to your inbox
SUBMIT

By registering for these newsletters you agree to our T&C and Privacy Policy
“While we recognise the benefits that foreign investment can provide for Australia, we must also ensure that such investment benefits all Australians, conforms to our rules and is not contrary to our national interest,” Morrison said.

However, a working paper published in December by the Treasury said foreign buyers contributed very little to the fast growth of residential property prices in Australia, and that domestic factors such as interest rates and population growth had played bigger roles.
The most expensive property the government has so far put on the market is a 16,000 sq ft mansion that Xu Jiayin, chairman of China’s development goliath Evergrande Group, purchased for A$39 million in 2014.

 

[syed putra]

Get more indians to move to australia.
They blend well with aborigines. Similar culture. Whisky and gin.
And should be given bumi rights! like the president.

 

[krafty]

This is the result of shutting out foreigners from buying australian properties unless its a newbuild homes.

look at vancouver, from boom to doom cos' of foreign speculation.

an investment in oz residential property can never go wrong but avoid the apartments.

 

[Asterix]

Drop in Aussie and Sing dollar is good for me 'cos I earn in USD or equivalent

 

[Asterix]

Is that why @Leongsam is in New Zealand?

NZD also drop against USD!

 

[red amoeba]

Ok I am buying some crates of Penfolds 147

 

[krafty]

Drop in Aussie and Sing dollar is good for me 'cos I earn in USD or equivalent

hihi...asterix, good on ya. where about are you in?

 

[krafty]

NZD also drop against USD!

nz is near recession. read it from somewhere...

 

[Leckmichamarsch]

OK. This one reflects the strength of Aussie dollar. It will make export cheaper. Support more export at the same time induce more tourists dollar.

Why oz produce still same in pruce?

 

[Leckmichamarsch]

Get more indians to move to australia.
They blend well with aborigines. Similar culture. Whisky and gin.
And should be given bumi rights! like the president.

Make sure mooselims not allowed in

 

[winnipegjets]

Australia is an island in the middle of nowhere. If China doesn't buy its minerals, Australia has nothing to offer.