For people who can’t seem to understand whats going on with the ASX, here's something to think about.
China is Australia's biggest foreign investor, China are also the biggest holders of United States bonds and treasures,( they basically own a majority of the US debt) so when they’re buying it’s usually in USD. So why would they buy in AUD right now, especially when the likes of the IMF are concerned over the global outlook? You see when global markets start retracting again, like the US markets could very well do- where do you think all that cash end ups??..... you often hear People refer to it as being " On the side lines". When your talking about China, "on the side lines" basically means back into United States treasures! The USD becomes the “safe haven”. After all it’s the world reserve currency....
Also Smart money might think the AUD is overvalued against the USD, and if you’re concerned about the overall market, now could be a sensible time to pull your money out, and put it into the safe haven of US treasures. Check the charts, this is what happened during the GFC, and it’s what’s happened evey time the markets have tanked over the last decade.....
