12 Exchange Shopfronts Raided! Exchange Rates Dropped! What's been happening in Australia?
Jennifer Johnson - 25
Explosive news! Just the day before yesterday, the self-proclaimed "Australia's top exchange platform" Changjiang Exchange, underwent a comprehensive raid by the Australian police, resulting in the closure of all 12 of its stores in Australia! What could have led to such a massive operation?
According to reports from the Australian Broadcasting Corporation, the Australian police had been investigating Changjiang Exchange, the retail remittance business, for 14 months. Over the past three years, Changjiang Exchange helped criminals launder nearly 230 million Australian dollars. This is quite shocking within the remittance industry!
Making money is not easy, so remittance transactions must be handled with extreme caution! Now that we've covered the major event, let's look at the current exchange rates in Australia!
From the trend chart, it seems that the Australian dollar exchange rate has also participated in this year's "Double 11" mega sale. However, unlike the convoluted promotional activities of "Double 11," the Australian dollar exchange rate has taken a straightforward approach—starting the "4.7 discount" mode: the rate drops when it reaches 4.7. While "Double 11" discounts have no upper limit, the Australian dollar has no lower limit, emphasizing a significant decline.
Source: Sina Finance
The "Double 11" shopping festival originated from the 2009 Taobao e-commerce event and gradually evolved into an annual fixed promotion. So, the question arises: what is the reason behind the recent "discount" trend in the Australian dollar exchange rate? Let me analyze it for you!
Weak Australian Economy
On one hand, the latest economic data released by the Australian Bureau of Statistics this month showed that Australia's GDP grew by 0.4% in the second quarter of this year, remaining flat compared to the previous quarter, with a slower decline than the 0.7% decrease in the same period last year. This marks three consecutive quarters of slowdown since the third quarter of last year.
On the other hand, the Judo Bank Australia Manufacturing PMI for September 2023 was 48.7, lower than the 49.6 in August. This is the seventh consecutive month that the index has been below the 50-point threshold, indicating that the Australian manufacturing industry is still in a contraction phase.
Matthew Hassan, Senior Economist at Westpac Bank, stated that although consumer confidence in Australia slightly improved in October, optimism is still severely lacking.
Strong Rise of the US Dollar
The US economy has performed exceptionally well this year. On the one hand, the US job market has been relatively stable, and hawkish comments from the Federal Reserve regarding interest rate hikes have supported the strength of the US dollar to some extent. On the other hand, stronger-than-expected US economic data has driven US bond yields to new highs for the year.
In addition, the surge in safe-haven sentiment has also provided strong support for the US dollar. The escalating geopolitical risks in the Middle East have led to a surge in international oil prices. From an investment perspective, concerns about geopolitical conflicts and international oil prices have driven investors towards the US dollar, known as a "safe haven".
These various factors have combined to support the strength of the US dollar, further causing the Australian dollar to continue its decline.
Exchange rates fluctuate frequently. For Chinese friends living and studying in Australia, the depreciation of the Australian dollar can be seen as a promotional opportunity. And it's not a gimmick - it's a real chance to save money. So, those who need to exchange currencies should seize the opportunity and act promptly!
It's worth mentioning that the pre-sale activities for "Double 11" have already begun, which means that the Black Friday shopping season is not far behind! Panda believes many of you are already eager and prepared for a shopping spree. Based on previous experiences, make a shopping list, compare prices across multiple stores and online platforms, and hope to get the maximum discounts and the most cost-effective deals.
However, we cannot control the intensity of the promotional activities. So, taking advantage of the current low exchange rate and preparing money for the upcoming Black Friday promotions is better. Combining promotional activities with favorable exchange rates will maximize value for money!
Once again, Panda reminds you that there have been frequent incidents of cross-border remittance fraud recently, so people who have exchange needs must choose a safe and reliable service provider!