The fall in the AU$ is also helping push stocks lower. People...

The fall in the AU$ is also helping push stocks lower.

People were clamouring for a lower dollar in order to boost the share prices of FMG and others. I've often pointed out that the materials market almost always goes in the same direction as the dollar, despite that making no mathematical sense.

The reason seems to be that foreign buyers stay away when the dollar is falling, in fear that will fall further and degrade their investment when they sell. Makes sense. They will probably start buying again when the dollar bottoms out, which might account for the usual sudden spike for no obvious reason.

Its not only FMG that is feeling the pinch. The big banks have lost more than 10% in this tumble, which represents a massive amount of money. Where has it gone?