FOREIGN EXCHANGE RATES – ECONOMIC ASPECTS – AUSTRALIA

$A doing its job to help stabilise the economy

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Original article by Sarah Turner, Jonathan Shapiro
The Australian Financial Review – Page: 31 : 22-Apr-20

The Reserve Bank of Australia has bought $47bn worth of federal and state government bonds since 20 March. The central bank has progressively reduced its daily bond purchases from $5bn to just $500m since then, and it will now buy federal government bonds three times a week and state bonds just once a week. Meanwhile, RBA governor Philip Lowe says the Australian dollar fell more sharply than he had expected in March. It reached a low of $US0.5741 and has since recovered to around $US0.63. Lowe says the currency has been a "great shock-absorber" for the domestic economy over the last three decades.

CORPORATES
RESERVE BANK OF AUSTRALIA

Miners feel pinch of dollar, oil switch

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Original article by Paul Garvey
The Australian – Page: 20 : 23-Mar-16

The Australian dollar has risen by about 10 per cent so far in 2016. This has offset the benefits of the rebound in the prices of key resources commodities, which are typically priced in US dollars. Mining companies have also been hit by increased fuel costs due to the rally in the crude oil price. Tom Price of Morgan Stanley says the rise in the value of the currency and the crude oil price may prompt more resources groups to reduce production or mothball mines.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Chinese face big losses as $A falls

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 39 : 14-Sep-15

Basis Point estimates that the sharp decline in the value of the Australian dollar since late 2014 has cost Chinese investors about $A12bn. Basis Point’s David Chin notes that investors in residential property who have already settled the deal will have lost money. However, investors in off-the-plan apartments that have not yet been settled will benefit from the currency’s decline.

CORPORATES
BASIS POINT CONSULTING, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Chinese investors lose $12b with Aussie’s fall

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Original article by Rose Powell
The Australian Financial Review – Page: 27 : 10-Sep-15

Data shows that Chinese investors have injected some $A92.6 billion into the Australian economy over the last three years. However, the Australian dollar’s 34 per cent slump since the end of 2012 is estimated to have reduced the value of Chinese investments in the residential property market and resources groups by 30 per cent. This equates to a monetary loss of $A12bn.

CORPORATES
BASIS POINT CONSULTING, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, STANDARD AND POOR’S ASX ALL RESOURCES INDEX

Jetstar says south-east Asia routes taking off

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Original article by Jamie Freed
The Australian Financial Review – Page: 26 : 6-Aug-15

Australians have changed their travel destinations, in response to the fall in the Australian dollar. Jetstar Group CEO Jayne Hrdlicka told the CAPA 2015 Australia-Pacific Aviation Summit in Sydney on 5 August 2015 that demand has shifted towards south-east Asia, which is cheaper that the US and Europe. Demand for domestic destinations is still subdued, but Hrdlicka expects an improvement over the next two years.

CORPORATES
JETSTAR AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, CENTRE FOR ASIA PACIFIC AVIATION, CHINA SOUTHERN AIRLINES COMPANY LIMITED

Three in a row for AustralianSuper

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 15-Jul-15

Chant West expects balanced superannuation funds to achieve a median return of 9.5 per cent for 2014-15. Meanwhile, AustralianSuper has reported a return of 10.9 for its balanced option in 2014-15, while its combined return for the last three financial years was 46 per cent. Deputy CEO Mark Delaney says the sharp fall in the value of the Australian dollar contributed to the performance of the group’s balanced fund in 2014-15.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIANSUPER PTY LTD, TOWERS WATSON, RICE WARNER ACTUARIES PTY LTD, FRONTIER ADVISORS PTY LTD

Take-off in US tourists tipped

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 18 : 22-Jun-15

Tourism Australia has secured a new marketing deal with Virgin Australia Holdings, after first joining forces to promote Australia in 2012. The two groups will jointly spend $A50m to promote the nation, with the US to be targeted initially. Meanwhile, Virgin CEO John Borghetti anticipates an upturn in tourists from the US due to the lower value of the Australian dollar. Tourism Australia has also renewed its marketing deal with Etihad.

CORPORATES
TOURISM AUSTRALIA PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, ETIHAD AIRWAYS, QANTAS AIRWAYS LIMITED – ASX QAN, DELTA AIR LINES, AMERICAN AIRLINES INCORPORATED

Falling $A bolsters Bookworld’s fight against Amazon

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 10-Apr-15

IBISWorld estimates that sales of books online have risen by 26 per cent annually over the last five years, compared with a five per cent-plus annual decline in retail book sales over the same period. Bookworld has benefited from the Australian dollar’s 18 per cent fall against its US counterpart in the last eight months, as it has made the online bookseller’s prices more competitive against offshore rivals. Bookworld now boasts about 1.5 million registered customers

CORPORATES
BOOKWORLD, ANGUS AND ROBERTSON PTY LTD, BORDERS GROUP INCORPORATED, AMAZON.COM INCORPORATED, THE BOOK DEPOSITORY LIMITED, DYMOCKS BOOKSELLERS PTY LTD, IBISWORLD PTY LTD, REDGROUP RETAIL PTY LTD, PEARSON GROUP PLC, RANDOM HOUSE AUSTRALIA, SAP AG, BOOKTOPIA PTY LTD

Businesses trading offshore will capitalise on ‘sweet spot’

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Original article by Timna Jacks, Lucille Keen
The Australian Financial Review – Page: 8 : 12-Mar-15

The Australian dollar reached a low of $US0.7588 on 11 March 2015. Anthony Halas, the CEO of swimwear group Seafolly, says his company’s domestic margins have been affected by the falling currency, but notes that the business has benefited from its international expansion. Hybrid Electronics proprietor Walter Berryman says his firm has also benefited from the lower dollar, as its purchasing and sales are in US dollars and its manufacturing costs are in the domestic currency

CORPORATES
SEAFOLLY PTY LTD, HYBRID ELECTRONICS AUSTRALIA PTY LTD, ASCIANO LIMITED – ASX AIO, McLACHLAN TOURS

Virgin predicts lag before revival

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 15 : 6-Mar-15

Virgin Australia Holdings CEO John Borghetti says it will take some time for a lower Australian dollar to stimulate growth in the number of foreign tourists. The full impact is most likely to be experienced in the second half of 2015. The airline is expanding its regional routes. From 25 May 2015, Virgin will offer six flights a week between Sydney and Tamworth

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, SKYWEST AIRLINES LIMITED, QANTASLINK, QANTAS AIRWAYS LIMITED – ASX QAN, ALLIANCE AVIATION SERVICES LIMITED – ASX AQZ, SKYTRANS AIRLINES, BRINDABELLA AIRLINES, VINCENT AVIATION (AUSTRALIA) PTY LTD