Australian dollar falls into 75s as wages miss

Oh dear:

0.5% versus 0.7% expected. No minimum wage lift there. More to come.

Meanwhile, go you good thing:

 

Comments

  1. Wages aren’t rising because any Australian company who employs expensive locals over foreigners is wasting money. Many companies have realized what good value 457 immigrants are.

    Simply put, It is much cheaper to employ immigrants.

    The company I work at (big IT co.) replaces anyone who resigns or falls pregnant with someone on a 457 visa. They cost around 60% of the person they replaced, don’t demand any training, and we can work them harder and for longer hours because of the threat of revoking their visa. All you need is a smart immigration lawyer to handle the paperwork.

    • My own anecdotal input says that dodgy Student visas, carers visas, etc are an even greater strain on wage inflation. 457 visa workers still technically adhere to red tape, the other visa holders are working in the cash economy for a fraction of minimum wage.

    • When USD/AUD hits 0.4 in a few years the 457 ones here will have a rethink about their future and the ones on the way will stop coming.

  2. How much stress is a materially lower dollar going to have on banks offshore funding? No doubt they’ve curtailed their borrowings in recent times to assist in offsetting this, but still… it’s no small amount of money, margins are slim, and we’re mortgaged to the eyeballs….

    • The banks will be protected. Graph was put up the other day showing how important they are to our economy – they represent almost a third. That is a catastrophic imbalance.

      As a result – not only will their positions be protected, but so will their profits.

      Despite the economic theory pointing to a rate cut, the political reality points to a rate hike – banks profits will be protected as they are going to be in the UK.

      People are looking to Canada for a test case on Australia – look to the UK instead – horrific Torries running austerity and spite campaigns instead of governance and look at Brexit as the China pull back / slow down.

      Fun times are coming.

  3. Heard our payrise and bonus budget got slashed at the 11th hour despite a record year.
    I’m protesting by procrastinating on MB!

  4. Hill Billy 55MEMBER

    Will this be factored into the MYEFO coming up? If it is, then the AAA rating is definitely gone – it should be anyway.

    • Jumping jack flash

      How they can slap a AAA on our debt machine economy is beyond me.
      Someone is doing some smooth talking, but on the other hand, maybe everyone on earth is playing the same tune?

      “Oh so in Australia you have debt creating debt, supporting debt? That’s the business! No problems down there. Here, take our money”.