Despite Glenn Steven's (Governor, RBA) best attempts at jawboning, the Aussie dollar has remained stubbornly high. A close look at the stats shows that all is not rosey with the Aussie economy, yet it continued to hold. With the "impending" recovery of the US economy, how long can it last?
Living in Australia, I can tell you that things here are far from rosey and only getting worse. Iron ore, one of Australia's major exports, is at a 5 year low in price, with several high profile mine sites either closing down or on the brink. The mining boom we have experienced over the last 5-10 years is definitely behind us and unwinding at a rapid pace.
The unemployment rate, despite official ABS figures, is definitely accelerating. The cost of living is rocketing and the housing market resembles a massive bubble about to burst. First home buyers can't even afford to get into the market, a first in Australia. So when will it all end?
Take a look at the images below - are we there yet?
The Major 7 Currency Raw Strength
The Turning Point?
