The Australian dollar has been hit by a fresh wave of selling, plunging to
another 11-month low as investors continue to pile into its US counterpart.
The currency fell as low as 97.98 US cents in offshore trade, a level not
seen since early June 2012, and down from 99.12 US cents about midday on
Thursday. In early trade on Friday, it had recovered to 98.22 US cents....
The Aussie dollar has dropped 5 per cent this month. It started tumbling amid
more signs of a slowdown in China and after last week's interest rate cut by the
Reserve Bank. (here)
A bit more on the low Australian property numbers, an SMH article making the point they coincided with the ending of a government subsidy scheme. Like the Warren Bufffet favourite of a naked swimmer exposed by the receding tide (in this case receding government subsidies) what is key is that the ending of the first home buyer's grant is not part of the whole story.
The accompanying recording of Dr Andrew Wilson of Australian Property Monitors is interesting, you get a sense of fear and uncertainty. Likewise from Sydney estate agent Shannan Whitney:
...Yesterday the BresicWhitney principal Shannan Whitney was surprised at the extent of the first-home buyer collapse. "Those numbers are quite dramatic," he said (here).
