Monday, October 27, 2008
Farmers welcome falling Dollar
Ok so at the moment the Aussie is taking a bit of a hiding and certainly as Overseas Fund Managers repatriate funds what do think you would be doing to make it as cheap as possible to exit their dollars - of course selling the Aussie down the toilet. In the late 1980's there was a dealer in New York who was manipulating the Aussie Dollar to his own end in a twenty four hour period. Cannot remember the details precisely but it was mooted he was trading the whole Aussie GDP in a twenty four hour period.
The Aussie Dollar was a cute little currency that was easily pushed around, politically stable and mere cannon fodder for the big dealers - guess what nothing has changed.
The other thing every year as we negotiate wheat contracts and other commodity contracts in USD the AUD takes a bath - shock horror again manipulating through payer to make Aussie Exports more attractive.
Fortunate the RBA knows this and "props"up the AUD only to make a killing when commonsense finally prevails.
The only concern at the moment and the main thing lacking in financial markets is commonsense. I for one will question whether I shall ever use a Broker again and simple trade through the facilities provided by my Bank.
Lets sell that wheat boys.....