interesting views - I agree with some of your sentiments but I respectfully disagree with you - re: our market .
I believe it's pretty obvious that we do follow the US overnight market - to the extent that our sentiment even changes with their futures market indicators - before the US even starts to trade the next day, we look at what their intentions /sentiments are our markets either head up (following positive future leads) or down (negative futures).
Not only do we catch a cold based from their overnight sneeze(a previous down day) - we even take vitamin C if they are likely to sneeze(their futures market).
So our market has almost faithfully followed their market whatever the AUD/USD exchange rate happened to be - in fact oblivious to it .. yet I can't help thinking hand on a sec. our dollar has gone from 0.60USD to 0.98USD and our market has thus risen 60% more than the US market in real terms. Does the market just keep on ognoring this - and how can it ? Put it this way .. Had our dollar not strenghtened - had it remained at 0.60USD - I reckon we would have still have followed the US market in the same way - and still be at the same ASX levels - which to me is crazy that there's no consideration for what the exchange rate is doing.
