Tag Archives: AUD

Fall in Interest Rate Rise in Gym mat pricing

The AUD and Interest Rates Effect on Gym Mat Pricing

With Australia’s unemployment rate remaining at 5.2%, even though jobs growth was solid, one can expect the RBA to continue to look at the state of the economy and the need to stimulate it. The participation rate rose confirming that a lot of slack remains in the labour market which means wages growth should remain subdued for the time being. The Effect on Gym Mat Pricing will be seem.

With this the RBA minutes revealed they will “continue to monitor developments in the labour market closely and adjust monetary policy if needed”. What this means that the chances of another rate cut could be on the cards.

Federal Government Stimulus

Obviously the Federal Government is comfortable with the current economic situation otherwise they would be injecting more stimulus into the economy. Either that or they have run out of ideas. Either way we can’t expect to see any action by this government or reaction to what the RBA is saying. What that means is that all that we can expect is that any response to economic decline will need to come from the RBA, and all the RBA can really do is reduce interest rates.

Should the RBA chose to reduce interest rates there will be a number of effect.

The Effects of interest rate falls

We can expect the AUD to fall against the USD. This is what has been happening ever since the RBA first started to drop interest rates. Also the rise in the Fed Reserve Rate in the US has further exacerbated the effect. Obviously when the AUD falls it leads to imported inflation as a large portion of what Aussies consume is imported. The same can be said for gym mats which are an imported product. Gym mats are everything from:

Jigsaw Mats
EVA mats
Tatami Mats
MMA Mats
Yoga Mats

2. It would be hoped that a fall in interest rate will stimulate the economy. When consumers have access to cheap credit it is hoped that they will borrow money and purchase things such as cars and other items. This then is meant to lead to inflation which is necessary to help the economy. One would expect that this inflationary effect would also touch products such as gym mats and thereby causing their price to rise.

3. Business expansion is the final frontier of rising interest rate. As well as encouraging consumers to consume more products such as gym mats, it is hoped that increase consumption and cheap credit will also encouraged businesses to invest more. This investment is meant to spur employment as companies general require more equipment and workers when they expand.

So for example if an MMA club decides to setup a new school due to more demand for their services than they will require gym mats such as MMA mats and jigsaw mats for their premises.

So you see the Effect on Gym Mat Pricing are immediate. How effective they are in the long term remains to be seen. Whether they can be effective without reciprocal government stimulus is also another question.

Coalition Win Temporary Boast For AUD and Gym Mats

The coalition win over the weekend proved to be just a temporary boast for the AUD and gym mats. The Liberal National coalition surprised the nation and all the pundits. It was expected that the Labour Party would easily win the election but that was not the case. In the end the Libs ended up with a majority in the house with the Senate yet to be decided.

The initial reaction to the Liberal victory was the strengthening of the AUD. For the first time in weeks in shot up above $0.70. It was also a boast for gym mats as it seemed that pressure for a price rise would subside. The price of gym mats has steadily increased over the past year. First it was eva mats which went up at the beginning of the year. The price of 40mm jigsaw mats went up whilst the other thicknesses staid the same. The price of MMA mats and tatami mats also increased in price over the last couple of week.

The short lived increase in the AUD was broken by the Reserve Bank hinting that there could be an interest rate cut in the not too distant future. Some are predicting a cut as soon as June and then another in August. Such cuts could lead to the Australian Dollar falling further and therefore even more pressure on the price of gym mats.

AUD Falls After RBA Speech

The AUD falls to the lowest level since January 4^th after the RBA speech which indicated lower than expected growth and inflation. The Aussie was off against all of the majors except for the NZD. The RBA Governor Philip Lowe recalibrated interest rate expectations. They went from mildly hawkish to neutral due a slow down in economic activity. This is a result of the down turn in the housing market and other international uncertainty. That is despite the fact that iron ore is trading at highs and the price of oil is holding up. Both of which are major Australian commodities. Adding to the pain was a weak retail sales reading and a marked decline in imports and exports in December.

This AUD falls might have the effect of impacting inflation which would be ironic considering it was one of the RBA’s chief concerns. The depreciation in the currency will have a effect on any new imports of jigsaw mats and MMA mats. Whilst we always endeavour to keep pricing down any persistent downward trend in the value of the AUD has an impact on pricing. This is true of all products imported into Australia. Jigsaw mats are imported from China as too are MMA mats.

Market Watch

AUD stabilised against the US dollar for the first time in two week as most commodity prices rose, led by oil. A projected OPEC supply cut led crude to a November high, up 4.3%. Our chief commodity iron ore was lower. Iron ore dropped 3.4% to $70.34 a ton as Chinese port stockpiles rose to a two year high. The forecasts for average prices of $58 this quarter and $50 in 2017.

A lower Australian dollar leads to;

Higher price for imported goods.
Increase change of interest rise.
Less money in the bank for most of us.
Higher prices for interlocking jigsaw mats.

Hopefully stability will persist in the Australian economic environment.

Why Use Gym Mats

Gym mats are an essential safety measure as they protect people from injuries due to falls and impacts. They help minimize strain on the body and ensure gym members are comfortable when they exercise. At Ezy Mats, we specialize in gym mats and provide customised solutions to our clients. We will help ensure your gym has comfortable and resilient flooring that would last for several years to come.
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AUD Comes Down Due to Deflation Concerns

The Australian Dollar retreated this week due to concerns with deflation. The dollar was off by 2% after the ABS reveal deflation of -0.02% in the last quarter. The softening in prices was mainly due to a full in the price of oil and food. This worried the markets into thinking that the RBA’s next more may be more easing. The market has factored in a 50% chance that the RBA will drop rate if not at their next meeting then very soon.

The effect of the falling dollar on EVA interlocking jigsaw mats has been minimum. Ezymats has been and continues to be the best price suppliers of martial arts training mats in the market. Our interlocking jigsaw mats are both the best price and best stocked in the market. Ezy Mats have containers arriving almost every week to refresh supplies to keep our Australian customers happy.

AUD bouncing around

The Australian dollar traded steadily on Friday, after sustaining sharp losses a day earlier. The RBA lowered its forecast for GDP of 2-3% in the year through June 2015, down from 2.25-3.25% in the May projection. The RBA added that the unemployment rate was likely to “remain elevated for some time”. The RBA statement also took note of the high value of the Australian dollar, which has gained about 6% since February.

China’s growth increases to 7.5% in Q2

The mainland’s economy grew 7.5 percent between April and June from a year earlier, slightly above expectations and quickening from the 7.4 percent pace in the first quarter, reinforcing hopes that a recovery is under way after a flurry of government stimulus measures.

Other data released alongside the gross domestic product report showed factory output rose 9.2 percent in June from a year ago, beating expectations of a 9.0 percent increase.

Fixed asset investment, a mainstay driver of the mainland’s economy, climbed 17.3 percent in the first six months compared with a year earlier, above forecasts for a 17.2 percent rise.

Retail sales rose 12.4 percent in June from a year ago, in line with analysts’ predictions.

China’s economy got off to a weak start this year as unsteady foreign and domestic demand dragged on exports, investment and industrial output, prompting the government to announce a slew of stimulus measures.

Many economists believe more policy support may be needed in coming months to sustain any recovery, particularly if the already cooling property market begins to deteriorate more sharply.

Market Watch

Share markets from Asia to the US slumped last week on the back of credit risk aversion and disappointing earnings. The Dow Jones lost its YTD gains in one session and the S&P 500 shed 2.3% in recording its worst week since 2012.

The ASX dropped 1.36% on Friday to close at 5556 after hitting a 6 year high earlier on in the week. UK and European shares lost ground in the wake of a lower than forecast manufacturing data reading from China.

Gold rose by 0.9% on Friday to close at $1294/oz after a disappointing jobs report from the US. More on that in the USD section below.

Oil saw its biggest weekly drop in seven months after the refinery utilisation rate dropped for the first time in 5 weeks. WTI finish 0.3% lower at $97.88/bbl.

The AUD lost close to 1% last week as economic data was softer than expected, disappointing investors after a largely positive previous week. Building Approvals dropped 5%m/m and the Producer Price Index fell 0.1%, just the second negative reading in four and a half years. This lower than expected inflation gauge opens the way for a further rate cut should Glenn Stevens deem it necessary. Retail Sales data released today ahead of the RBA meeting tomorrow should provide some interesting reading.

The price of EVA jigsaw rubber gym mats is stable. Ezymats is still the market leader both in Australia and globally though their China office.

Market Watch – Interlocking EVA Jigsaw Rubber Gym Mats

US stocks rose over the weekend, the S&P500 rising 0.30% higher to 1,936.15. The equities benchmark nearly erased its gains in the final hour of trading amidst potential uncertainty surrounding the conflict in Iraq. Islamist fighters in Iraq extended their advance, highlighting a risk to oil supply from the OPEC region and raising fears of another gulf war brewing.

Australian shares fell 0.44% on Friday, the biggest drop since the start of February following from the insurgent attacks in Iraq. This geopolitical risk added pressure to weakening spot price of iron ore and coal with the exception being energy and gold stocks which benefited from the tensions.

The spot price for gold strengthened 1.50% to $US1272.15 per ounce and the spot price for oil surged above $US114 per barrel for the first time in 9 months.

The Australian dollar is at seven month high despite geopolitical fears in Iraq. Over the past week it has been emerging as a “safe haven”. Australian dollar opened slightly lower today, pushed down by profit taking and lowering iron ore price. The dollar may see some downward pressure with the Federal Reserve policy meeting this week.

The price of EVA foam jigsaw interlocking rubber gym mats remains stable. Ezymats is a leading supplier in Australia.