DislikedRate rise in AUD wont be a good thing for them. Seems the only key driver is household prices. Spending is nowhere it should be. Couple that with weak export demand and suppressed commodity prices in the middle of a structural shift in the economy. A rate rise seems to be nothing more than another slowdown for them as things stand. Like I said many times before, fiscal stimulus will have to come to make up for the private sector shortfall. When Ben Bernanke said "Monetary policy cannot work in a vacuum". He was so right. This won't be just the case...Ignored
AU is a very high cost and low efficiency country. High tax or high rates will push cost even higher. In this country, big manufacturers are about leaving this country or already left. China is slowing down their crazy infrastructure investment due to high debt and low efficiency
In mid-long term, AUD will be much lower than current level. But Gov needs money to invest in infrastructure and meantime Japanese Yen is a real cheap money and becoming even cheaper, Uridashi bonds selling well. That's the reason why we see AUD at this level and probably even a little bit higher.