AUD 0.00% 1.5362 australian dollar

Hi guys, just an update on where I think the $AUD is going. The...

  1. 827 Posts.
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    Hi guys, just an update on where I think the $AUD is going. The RBA is under pressure, unfortunately there are fundamentals which are out of the control of the RBA, eg. coal, iron ore, exports, and property. In real terms they are trying to avoid a deflationary spiral and therefore don't really care about Sydney property, money has to flow somewhere if there is a profit in it. However, if one looks at the Dow/S&P, they are exhibiting irrational exuberance  with regards to PE. Once again its cheap money chasing yield and pushing prices up. It has to come to an end as will Sydneys property market as yield is not matching capital gains. Once this exuberance (Stevens has borrowed this term from Greenspan and Schaffer)starts to ebb we are going to be pushing sheet up hill. What does Australia have to offer apart from being a quarry? ZIP! Abbott doesn't understand innovation and our need for scientists, we have made significant scientific breakthroughs in the past, but alas all the boys are going overseas.
    To cut the story short I see .75c soon followed by .73-.72 in July and maybe even sub .70 by xmas. Below is a current chart I am working with, I have no shorts in place at the moment but I am primed and waiting
    chart.png
 
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