I disagree, if the rally continues then the $AUD will rise further and the RBA will be forced to cut to lower our dollar so that the economy can continue to rebalance.
Come on Rufus, they're not going to cut interest rates when inflationary pressures are building and all indicators are on the up. They had the luxury of an IR cut when the arse fell out of iron ore/GDP in 2014/15 and they could claim that it was part of stimulus. Sure they will complain about the dollar but so what. If we go back to high iron ore/high dollar, RBA will just do nothing.
Come on Rufus, they're not going to cut interest rates when inflationary pressures are building and all indicators are on the up. They had the luxury of an IR cut when the arse fell out of iron ore/GDP in 2014/15 and they could claim that it was part of stimulus. Sure they will complain about the dollar but so what. If we go back to high iron ore/high dollar, RBA will just do nothing.
The RBA has two mandates.
1. Contain inflation (the RBA read that to be between 2% and 3% pa.)
2. Maintain as close as possible full employment.
We are seeing very little inflation, so right now it's all about creating jobs in the new economy.
Take risks - if you win you will become wealthy, if you lose you will become wise
Come on Rufus, they're not going to cut interest rates when inflationary pressures are building and all indicators are on the up. They had the luxury of an IR cut when the arse fell out of iron ore/GDP in 2014/15 and they could claim that it was part of stimulus. Sure they will complain about the dollar but so what. If we go back to high iron ore/high dollar, RBA will just do nothing.
When they raise interest rates all our housing markets will be increasing in price. They will raise to cool the market.
If IO maintains these gains then Australia is gonna make some good money this year and all you bears will be weeping and wailing over bypassing one of the best times to buy and pay down a home in decades.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Iron ore dropped on Wednesday, eroding Monday's record surge, amid a revival in concern that global supply is outpacing demand.
The global iron ore market remains grossly oversupplied, demand in China is faltering and there's a severe glut of steel, according to Li Xinchuang, deputy secretary-general of the China Iron & Steel Association. Li, whose group represents the top mills in the country that makes half of the world's steel, said that the recent gains probably won't last.
This week's gyrations had been driven by shifts in futures in China, according to Lourenco Goncalves, chief executive officer of Cliffs Natural Resources, the largest US producer. The price is controlled by the futures market and by speculation on the Dalian exchange, Goncalves said in an interview. "It has no correlation at this point with the physical market," said Goncalves, whose company also has mines in Australia that ship output to customers in Asia. On Monday, "money poured into the market and that was it" as investors reacted to the comments from Premier Li Keqiang at the weekend, Goncalves said.
Precisely, although you've attempted to cherry pick as usual, your chart shows that prices crashed from $190/tonne to $38/tonne.
And no housing crash, a tiny blip in Perth is all it generated. So what do you think is going to happen when prices rise. The pressure all upwards on commodities lately.
As usual the bears only want to take notice of negative movements, reading one page of the ledger.
So so blind. Precisely, although you've attempted to cherry pick as usual, your chart shows that prices crashed from $190/tonne to $38/tonne.
And no housing crash, a tiny blip in Perth is all it generated. So what do you think is going to happen when prices rise. The pressure all upwards on commodities lately.
Rastus is actually aware of what is coming down the track I believe.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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