asia up, australia down, $a up

Well, it looks like the tide is now turning. Yet no-one is commentating on this.

Could foreign investors now be withdrawing their investments from Australia?

Quite possibly so, given today's disparity between Australian and Asian trading conditions.

In today's trading conditions alone, the A$ is up a further 80 basis points (that's 0.8c) to 76.31. In respone the ASX is down almost 1/2% (-13) whilst, with the exception of the NZSE, all other markets in Asia are up between 1-1.5%. That includes Japan, Hong Kong, Manila, Singapore, Seoul and Taipei.

Even the NZSE ended the day in minor positive territory.

No more the merry domestic market for Australia as the impending currency implosion threatens to wreak havoc throughout Australia.

Judging by today's trading conditions alone, Asia is anicipating further recovery in 2004 whilst the jury is out concerning Australia.

My prediction for the ASX in 2004 (to under-perform global indices by >15%) suggesting a sub-3000 finish for the year. My tip = 2850 - 2900.