Watching business lateline on the ABC tonight made the point that foreign investors are simply sick of the increased regulation risk with this Gillard govt. We go from new tax to new tax, with no consultation to business changing the rules daily. It is very difficult for business to set future plans to such an unstable regulatory landscape.
Couple that with what some believe is a slightly inflated A$ and this could explain the lack of movement in the aussie markets recently compared to the US. I also believe as a whole we are still a little sceptical of the US recovery as well.
