Now I get it. Why AUD is still rising despite the floods and typhoons. They probably still have enough oil, wheat, or whatever commodities they produce to support the economy. The political turmoil that is happening in Egypt is causing a strain to the commodities prices, causing commodities-linked currencies like AUD and CAD to rise.
For more info, you can read the article from Financial Times.
An excerpt:
Elsewhere, commodity-linked currencies found support as the ongoing turmoil in Egypt boosted raw materials prices.
The Australian dollar climbed 2.6 per cent to $1.0185 against the US dollar over the week, and the Canadian dollar rose 1.5 per cent to C$0.9852.
2 comments:
Oil and minerals being bought from China! Australia never entered recession... That also stopped NZ from getting it too bad coz Australia and China are our two biggest trading partners and they were both all good!
Hey!
Yea, you're right, China buys the oils and minerals from Aus, but China has always been doing so. It's at a constant rate I assume. Unless the demand of oil and minerals increases at a rate that is higher than is expected, AUD should stay the same.
The current inflation situation that is happening in China may cause China to look more to overseas suppliers (like Aus and Angola, lol) for their oil and raw minerals.
I think Egypt exports similar commodity products as Aus, and since revolt has happened in the country, the economy in the country would slow down, causing a decrease in the quantity of commodities supplied, causing a rise in prices in commodities, and Aus being a country that depends a lot on its commodity exports, would have its currency appreciate, as demand "increases" due to the shortage.
I see. China is also one of Singapore's largest trading partner. Sad. Seems like we're depending a lot on China to drive our economy. :S
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