Foreign Exchange Treasury Dealing Report and Money Market Treasury Dealing Report

Foreign Exchange Treasury Dealing Report and Money Market Treasury Dealing Report

1. Introduction

Every nation like Australia is faced with financial management problems to which their business industry should be able to attend to in order to take the economy to move especially during the times of crisis that the global communities are facing. Thus, key financial decisions normally confront the nation leaders in issues and problems that concerns financial investments they usually provide answer to the problems in economy. But despite of this, Australia remains to be a fortunate, strong economy with a per capita GDP almost similar with the four dominant West European economies. Given the importance on low inflation, reforms, a housing market boom, and excellent bonds with China have been essential variables over the course of the economy's 17 solid years of expansion. And as treasury dealing team, we always aim for maximizing business opportunities. In this report, the outline and the discussion concerning the Australian money market cash and bank bill interest rates over the past three years and the outlook of Australian money market for the next six month will be given. Aside from this, the strategies to be used in order to attain maximum returns and the risks to be faced will be also discussed.

2. Money Market Cash and Bank Bill Interest Rate over the Past Three years of Australia

For the past three years, strong business and consumer confidence and high export prices for raw materials and agricultural products stimulate the economy of Australia despite of the emergence of global recession.

Fiscal Year 2006-07

For the FY2006-07, the Australian economy shows great stability compared to other economies. However, there are downturns in the farm sector and related industries since the Budget has reduced forecast growth by three quarters of a percentage point. Despite of this, the employment growth has been stronger than anticipated at...