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.

  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.

    • 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”.

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