It seems that overseas investors are giving Australia the thumbs down. Fears over US and German regulatory reform, the European debt crisis and the Australian government's resource rent tax saw the local dollar hit an eight-month low of 85.17 US cent.
Along with external pressures things are not that great at home.
The Australian Housing Industry faces uncertain times with falling approvals for new loan home purchase, steady interest rate increases, end of the first-home buyer grant and talk of recession.
Consumer sentiment showed a seven per cent slide for May, its biggest percentage drop since the height of the credit crunch in October 2008. (Westpac-Melbourne consumer sentiment index)
Retail sales in April grew at their slowest pace in nine months despite a slight pick up during the month, a survey finds. (Commonwealth Bank Business Sales Indicator)
Indications that Retail business finds the going real hard continue to appear, with small and medium business particularly hard hit; discounting now becoming entrenched. Banks must be looking hard at some of their business loans.
Yet Australian Treasurer Wayne Swans upbeat Budget forecast still remains entrenched, based largely on future doubtful income, and firmly supported by Ken Henry of the Australian Treasury
Is this the bottom of the 'V' or do we face worse?
