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Aussie dollar hits 17 year high as government announces interest rate hike

Posted

The Australian dollar is hitting 17 year highs after the Federal Government announced interest rate hikes Wednesday.

Economist and former Federal Treasurer Tim Pallas says a large share of the recent rally in the Australian currency is due to people's fears about the cost of living in Australia.

"Some fear rising inflation, but more broadly people are concerned about rising costs of living," Mr Pallas said.

"Even though the Australian dollar rose as high as 17.50 to end 2015, that's actually a lot worse than it was just five weeks ago and certainly a very large portion of it is being caused by people's fears."

Mr Pallas says many Australians are not worried about the price of living in Australia because they believe they will be better off in overseas regions.

"People think if they come to Australia to live in a good place they'll be better off," he said.

"If I were to pay around $1000 for a house in New Zealand in Australia, I think they would tell me they're better off there because it has such a much higher cost of living than in Australia.

"But most people don't think about that kind of cost of living."

But many believe higher house prices are driving out jobless workers.

Mr Pallas says the housing market needs to be managed carefully, but the effect on wages is not good.

"This is why we've got a problem in Australia," he said.

"It is going to have a pretty big impact on the wages of Australian workers, and that's because in our household businesses are getting squeezed out by increased job numbers.

"That's the biggest one. It's going to force businesses out of the housing market, into a weaker economy where there's less of an impact on household incomes, and there's a reduction in wage growth as well."

Topics: business-economics-and-finance, housing, australia
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Cloncurry show to go ahead with fireworks show

But if it turns out they really wanted a little bit of fireworks, then that would make the night even harder to sell."

"If they didn't want a fireworks show, then they should've told us about the fireworks show sooner."

Luo Feng wasn't a fan of fireworks, he had tried many things when using a flame technique, but he never managed to pull off it!

Even though Luo Feng had tried many things, but he never managed to pull off fireworks.

However, when seeing this, he finally had something better.

Fireworks at an astronomical scale.

"Hmph, this is the kind of fireworks that they wanted." The stage was lit up, and in front of them was a giant fireworks ball. A hundred million balls of fire, could all be seen from the balcony, a hundred meters in diameter. The whole party immediately shouted and cheered, they actually felt this ball of fire were extremely big!

A lot of people were cheering and applauding.

The fireworks at the other side also looked big, some people even tried to move close to touch it.

"It's huge!"

"That's amazing!"

"A million of them, are we crazy!?"

"That fireworks ball, it's impossible to destroy that! What if it just exploded, wouldn't there be a huge hole!?"

"It seems like it will take forever, that's right, there's a total of twenty thousand fireworks balls!"

They were all so eager to know more.

"The fireworks and the big ball!"

Luo Feng smiled while nodding his head.

"Then let's go take a look at it."

He had already decided how to go!

The three of them walked down to the ground, a group of guys who were sitting behind the railing had all set their phones to the side. One of the three people on the balcony shouted loudly and a stream of fireworks started to fall down towards the ground.

"What kind of fireworks ball is this!? What's that!" The loud voice of the guy behind the railing couldn't help but disturb the crowd as he shouted.

Luo Feng was watching closely behind.

The group in the middle of the fireworks ball was completely shocked. How could a ball of fire, that was so large, come crashing down to the ground, and be destroyed in one fell swoop?

"Haha, it's a really big ball. It even came out of the ground!" Luo Feng was extremely excited, he thought in disbelief, this thing was a ball of fire ball.

"That ball of fire, it actually cam

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