wha?, page-9

I think for some time the ASX has started to lag behind the US market.

One issue that is taking place here IMO is expectation that rising inflation in overseas markets and the ensueing necessary interest rate rises will likely reduce the strength in the AUD. The oil rise over the last 3 weeks just brings this forward and more into context.

Personally I feel money is leaving the ASX, because overseas funds don't want the exposure to a currency they feel has peaked.

The AUD strenthened on the back of commodity demand (which inflation could slow) but also on the back of the Australian OCR being higher than other developed countries. Once other developed countries start raisng cash rates to combat inflation the AUD will come under pressure unless it also rises.

The market clearly doesn't feel the OCR can go above 4.5% as vast areas of the economy are rather lumpy at best.