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This was the government's intervention into kick starting the economy; to inturn get people spending, creating a demand for the Australian dollar by, building more homes. This process takes time to react, around twelve to eighteen months, therefore the interest rate cuts have not so far affected the dollar...
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This is one of the positives to come out from the Australian dollar's low level. Also if the dollar is low it keeps the current account deficit low. This is the situation, as Australians will not buy imports when they are expensive therefore not growing Australia's international debt or current account...
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