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10/06/15
17:41
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Originally posted by AverageJoe
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It may well get there, who knows? Should POG get to those levels I suspect AUD will not have much of a rally. There are a few factors that are difficult to see their effects;
End of cheap money from US as the bond yield spikes and continue to spike. Is that good for US economy that is fragile atm?
If Grexit does occur, how will the EUR react, suspect down so stronger USD. I don't see Grexit as helping PM since it should at least be factored in by now!
Just this simplistic correlation to EUR, our AUD will sink so Oz revenue generated goldies will have their margins preserved.
Just my 2 cents so I am buying and waiting if those levels of POG comes.
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Bond yields don't need to rise to stimulate inflation targets, it can be stimulated via a higher crude oil price by reducing inventories; remembering that the Fed is still wrestling with the yield curve in the hope that no recession is triggered.