Something 'unusual' has happened to the Australian dollar
Your web browser is no longer supported. To improve your experience update it here The financial uncertainty around Donald Trump's tariffs has had an "unusual" impact on the Australian dollar even as it weighs on global markets, according to the Reserve Bank . The Aussie plummeted in the aftermath of Trump's so-called "liberation day" announcement, dropping below 60 US cents for the first time since the pandemic. While a blow, particularly for Australians overseas who suddenly were getting less value for money on their travels, that was largely in line with historical trends. The Australian dollar is behaving unusually nearly two months after Donald Trump's tariff announcements. (Fairfax Media) "When the outlook for global growth weakens, the Australian dollar typically depreciates as investors expect our economy to be buffeted by the global headwinds," RBA assistant governor Sarah Hunter said in a speech to the Economic Society of Australia in Brisbane today. "When global investors are worried, they tend to focus on reducing risk exposure, moving their capital to low-risk assets in countries like the United States, Switzerland and Japan," she added. However, the dollar has since rebounded, bouncing between 64 and 65 US cents over the last month or so – more than it was buying before the tariffs were unveiled – and improving against other currencies tied to the greenback. That, Hunter said, is "more unusual", but appears down to what's happening to the US dollar more than a particular strength in the Aussie. "The weakness in the US dollar during a period of heightened risk is in contrast with many previous episodes, though it's too early to know whether this dynamic will continue," she said. "On average, the price of our exports in foreign currency terms hasn't changed. The so-called "liberation day" saw the Australian dollar plunge, but it's since sharply rebounded. (AP) "But the relative move of capital towards Australian assets compared to the United States... could support domestic investment activity. "We'll be monitoring how these channels play out over time." More broadly, Hunter said the uncertainty caused by Trump's volatile trade policy could lead to households delaying spending and businesses pushing back hiring and investment plans, and could also push down prices, although she said the RBA "can't be completely sure" about the overall impact. CONTACT US
Auto news: Google Gemini AI assistant coming to new cars in 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
12 minutes ago
- News.com.au
Food blogger slams trendy new cafe for ‘annoying' problem
An Aussie food reviewer has lashed out at a newly opened sandwich shop in Sydney for running out of food before he could try it. Food blogger John-Ray Boukarim said that he visited the newly opened cafe, Bertas, in the Inner West suburb of Marrickville – not once, but twice – and on both occasions the eatery had run out of bread for sandwiches. Taking to TikTok to express his frustration, he explained to his 14k followers that he had planned his 'whole day' around reviewing the food for 'no gain other than boosting their business'. However, when he arrived for the second time, he was disappointed to learn that he and at least 10 other customers had missed out on trying one of their coveted sandwiches. 'Listen, tell me how the f*** you open up a business,' he began. 'You think you would have your operation under control, knowing what stock levels you would need in order to keep up with the demand, yet you still finish and run out of food an hour or two before you shut.' 'F*** off, and stop wasting my time,' the expletive-filled rant continued. 'Don't open up a business unless you know how to run it. Like seriously'. Speaking to Mr Boukarim said that the cafe should increase their bread quantities to avoid this issue in the future, and if they don't sell out by the end of the day, they should donate the rest to charity or use it the next day if possible. 'As a consumer, when a business advertises a time frame of operation, I expect those to be reasonably available throughout that period,' he said. 'For example, a sandwich shop running out of bread an hour before closing raises questions about meeting customer expectations set by their own advertised hours. Why have a business open and closing time? Rather have 'Until sold out'.' He noted that this issue is particularly frustrating when it happens repeatedly, especially on weekends. 'Customers often work Monday to Friday, so their weekends are precious,' he said. 'Imagine planning a nice Saturday lunch with the family, waiting in line, only to be told you've sold out. 'That's incredibly annoying, especially for families with kids. It's a huge waste of their limited family time.' The video quickly went viral, accumulating over 60,000 views as Aussies shared their thoughts on this issue in cafe culture. A spokesperson for Bertas told that they've been amazed by the response they've received from the community after just five weeks of opening — and they're still figuring things out. 'We work out of a compact 36 sqm space with a small tight-knit team, and have up to eight people on deck during busy times,' they said. 'Each one giving their all to serve as many sandwiches as possible, always with quality and consistency at the heart of everything we do. 'Every sandwich we serve is made fresh to order, and we make as much in-house as possible — often starting in the early hours and finishing late at night.' They explained that while demand has exceeded expectations and continues to grow week on week, they're actively working to scale quickly and sustainably. 'This means sourcing more staff, refining operations, and doing our best to ensure we can serve everyone who comes through our doors,' they said. 'We hate having to turn people away, especially as we started this place to offer a high-quality product at an accessible price. This is what starting something from scratch looks like, and we're all in.' Commenters on the video mostly sided with the cafe on this one — saying it's common for businesses in their early days to suffer teething issues. 'You should give them more grace if they're new. They're still learning,' said one customer. 'They have only been open for a few weeks and you think they should have it down pat exactly how much stock they need?' questioned another. 'Even a business that is 15 years old might have weeks they weren't expecting and can be sold out'. Others claimed he made a mistake by going so close to closing time. 'If you want good fresh food, rule of thumb never show up two hours before closing,' another noted. 'You have the right to be upset but maybe go earlier next time,' advised another. Mr Boukarim told this publication that his intention with the video was not to tarnish the reputation of the business but to provide some constructive feedback. Currently, in Australia, 60 per cent of businesses will fail within their first three years of operation, with 20 per cent failing in their first year. He believes that this sort of 'tough love' he provided in his video can help businesses adapt quickly and critically assess their offerings — leading to more success in the future and, hopefully, preventing them from shutting down.
7NEWS
18 minutes ago
- 7NEWS
MG's new ute to be available with tough Australian-made accessories
MG Motor Australia has partnered with multiple Australian aftermarket companies to develop accessories for its incoming U9 ute, all of which will be available as genuine parts. The U9 is due to go on sale in Australia in the fourth quarter of 2025, and with local testing already underway, MG has joined forces with the likes of HSP, ARB, and AutoPacific to prepare a suite of accessories including bullbars, protection, tub lids and load racks that will be available as dealer options. HSP in particular – an Australian-based company that develops and manufactures accessories in Victoria – has already completed its prototype and testing phase and will have a series of parts available for the U9 from launch. The announcement follows similar partnerships announced in recent months, like BYD joining forces with Ironman 4×4 to develop accessories for the Shark 6. Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. 'Our MG team is very excited about the MG U9. We are working hard to ensure customers will be able to accessorise their ute for whatever adventure they have planned,' said MG Motor Australia CEO Peter Ciao in a statement. 'We have met with a range of companies including HSP and AutoPacific so far and have more potential suppliers to meet. 'We know Australians love to modify their ute, and the MG U9 will be ready for every adventure families plan with it. We can't wait to launch the MG U9 in spring this year.' HSP director Massih Aimaq says the company is excited to work with MG – especially in the context of an influx of new utes from China and Korea. 'We had already done some preliminary work on the vehicle platform, so it made sense to progress the conversation commercially – especially as we've worked with some of the key MG team members in the past,' he said. 'HSP products will be ready ahead of the MG U9's official launch, with prototyping and test-fitting already completed and only minor tweaks remaining.' HSP products to be available for the U9 include an electric 'Roll R Cover', ladder load rack, sliding bed loader, and an as-yet-unreleased manual roller cover. The company says it won't offer its tailgate assist and central locking kit for the U9, as it will feature these systems as standard. Similarly, the U9's semi-integrated sailplane means an aftermarket sports bar is unlikely. HSP's research and development director Masood Aimaq says the U9 presents a unique challenge in developing and adapting its pre-existing accessories. 'There are so many unique elements to the MG ute that we've had to revisit the drawing board several times to ensure our products don't just complement the vehicle's look but integrate seamlessly with how it's used,' he said. 'We have developed features like factory remote and central locking, and we'll be offering voice activation for the Roll R Cover via the HSP 4×4 app, something that's uniquely ours.' It's not the first time HSP has partnered with a vehicle manufacturer in Australia. It has previously worked with Nissan to develop dealer-fit accessories for its Navara ute, and had its electric roller cover fitted as standard for the limited-run Navara Black Edition. As for the other brands, ARB is known for its broad range of bullbars and vehicle protection accessories, while AutoPacific manufactures a range of towing and cargo storage products for various vehicles. While MG has sold utes in other markets before, the U9 – a twin to the upcoming Terron 9 from fellow SAIC Motor brand LDV – will be its first ute in Australia.
Sky News AU
38 minutes ago
- Sky News AU
David Jones teams up with Qantas to launch revamped loyalty scheme
Retail giant David Jones is teaming up with Qantas in a new move allowing Australians to bank frequent flyer points when shopping at the store. Around 17 million Qantas customers can choose between banking, David Jones rewards, or frequent flyer points. The program will commence this September.
