Since yesterday, the exchange rate of the Australian dollar against the RMB has plummeted again!
Look at the 12-hour and 24-hour trend chart, it is really straight down!
From its peak of 4.7893, it went all the way down to the early hours of this morning
4.7096
It was a terrible fall! As of Weiwei, the Australian dollar was 4 / 7144 against the yuan and the Australian dollar was 0.7014. 4%.
Not only did the fall out
The lowest in a week!
The lowest in a month!
The lowest in seven weeks!
Has even set a year`s low!
Even lower than the 4-7-142 on May 25, 2016, 3 years ago, it hit a three-year low!
I`m so stupid! Is this going back to 4.5?
Of course, every time the Australian dollar plummeted, there is a reason.
And this time the main reason lies in Australia itself.
On Wednesday, Australia`s Bureau of Statistics reported inflation for the first quarter of this year.
Analysts had expected inflation to be 0.2% higher than before.
But the figures show that inflation has plummeted.
In the year to March this year, the annual inflation rate in Australia was only 1.3%, not only down from 1.8% in December last year, but also the lowest inflation rate in nearly three years. For 13 consecutive quarters, it was below the 2% / 3% inflation level expected by the Bank of Australia!
At the same time, Australia`s CPI (consumer price index) grew 0 percent in March, well below the 0.2 percent growth expected.
As we all know, inflation and CPI are important indicators of a country`s economic.
The low inflation rate means that a country`s economic growth is slow, national income growth is slow, and social demand is reduced, resulting in lower product prices and lower CPI.
Simply put, Australia`s economic is not very optimistic, ordinary people dare not spend money!
Such an outcome would undoubtedly affect the Australian dollar`s exchange rate.
Within 25 minutes of the release of the report, the Australian dollar was down 0.5 percentage points against the dollar on a basis that had already fallen.
At the same time, market forecasts for the Bank of Australia to lower interest rates are also increasingly strong.
Because in 2016, Australia`s inflation rate was so low.
At the time, the Bank of Australia cut interest rates twice in a row to stimulate economic, to a record low of 1.50%.
So after Wednesday`s data, both ING Bank,JP Morgan and Citi predicted that the Bank of Australia could cut interest rates next month.
Banks such as the ANZ,CBA also speculate that the central bank will cut interest rates by June. And the Bank of Australia is expected to cut interest rates twice in 2019!
It is expected that:
By announcing a 25 basis point cut in May and a 25 basis point cut in August, Australia`s official interest rate would fall to 1%, an unprecedented low interest rate, and whether it would actually be cut. It is unclear whether the downgrade will really stimulate economic.
The only certainty is that, taking advantage of this fall in exchange rates, we need to move quickly.
Students studying abroad, do not hesitate to change tuition fees living expenses! Maybe we can save the rent next month.
Daigou friends, don`t hesitate, hurry up to order! Maybe you can make a lot of money.
As for the friends who work, don`t say anything, bury your head in carrying bricks.
