Quote:
Originally Posted by justbe
There are a number of factors at play here. In times of economic uncertainty funds flow to safety, ie: US$, Gold. The aussie dollar is seen as a risky currency. Also the RBA has again lowered the interest rates by a full 1% which took the market by surprise and lower interest rates means lower $AUS. Also commodity prices have taken a tumble which has a direct relationship with the $AUS. Australia $ remains vulnerable as an exporter of commodities. As a result, this makes our resources very cheap currently, which could be all part of the plan. Hope this helps.
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I may add to that the US dollar is no longer "Safety " . The US economy is going down , unemployment is rising , the US financial system in on the ropes . all the fundementals for the US economy are kaput and therefore ther is no reason fro the dollar to be at this level . Another country in exactly the same situation as the US , would have gone bust 40 years ago .. It is just manipulation of the markets . So in my opinion seeking "refuge " in the US dollar is just a useless act of short duration .
The currencies market are as manipulated as the market of gold and Silver
and if you do not believe so try to get those metals at the official quotes .
After the election in the US we will see ...
Escapee from OZ