monday trading

Since RBA speech and minutes release, they appear to give an indication of a hike in interest rate on 7th October
and $A has been sky rocketing but since then $US has drops further after Big Ben announcement of possible further Quantitative Easing and more rise in $A. As such it is more or less done the job for the RBA to raise rate and reduce risk of inflation.

As such my prediction is the RBA will do nothing on the 7th of October and unless the market come to term with this reality and $A comes off a bit then, if not we will have a real big surprise of pull back on $A come 7th of October.

I note our market has been lagging the percentage move compare to the US and it is something I have mentioned to a group of co-traders that is possibly because of overseas investors selling out of our market to capitalize on $A appreciation.

I am hearing of $A parity to $US and fundamentally it is possible but it?s not expected until next year and cannot go up in a straight line.

Good luck.