why is the australian market following the us

  1. 265 Posts.
    Okay ..
    There's been lots of money printing going on in the USA (Quantitative Easing) and lots more likely to come as a result of the bad employment figures last night and into the future probably as the real economy is not producing jobs on its own - it needs more money printing.

    So we have the US dollar weakening as a currency - which is making everything else rise against it - so we have strong commodity prices, a rising US stock market(but not in real terms as the USD is declining faster than the market is rising).

    Getting back to the Australian market where we have no money printing and a strong domestic dollar - why is our market rising in unison with the USD ?

    Can we expect a disconnect and some sideways ASX action at some stage whilst the US market continues to "rise" ?

    Interested in opinions ..


 
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