A look at 10 years of the AUD on ForexLive's birthday!
Yes, that's right, 14 August 2018 marks 10 years of ForexLive
Here is a little recap of the Australian dollar during that time.
The run up from end of 2008 is in the midst of the GFC when the RBA slashed interest rates. Fiscal measures followed from the Australian government. This did a lot to offset fear for the local economy, as we all know now there was no recession, indeed there hasn't een one in Australia for 25+ years.
The mining investment boom held AUD above 1 against the USD, as did the yield advantage with the US. (ps. I'm summarising here).
I remember when I first started at ForexLive and was guided along by Adam. One of the early ideas he gave me was not to ignore the unwinding of the mining investment boom. You may recall, if you were around in those days, my posts on the capex data each quarter highlighting falling mining capex … this of course coincided with the slow (ever so slow) subsiding of the Australian dollar. The decline was given a gentle nudge along, too, by the RBA lowering its cash rate further (from around late 2011 I'm referring to here) in a series of cuts.
Ahhh …. the good old days!
And they continue! Earlier this year when the first inklings were coming through of US tariffs (from Mr. ross) ForexLive posted they would not be good news for the AUD …. SAUD/USD down 8 cents-odd since.