Forex and Cindy thank you for the input and I will watch that video shortly. As for the terms of trade I think if China can put the money to use not in their losing stell/iron producers or the same real estate sector than yes the boost will be huge and could start another wave of China growth.
I am worried though that if RBA does not act it wont be the Mining/Housing/Banking sector that will bring down the house of cards but the Retail/Credit/Gov project sector is where we will see the first shoe to drop.
The day we see a drop in Terms of trade that is a head turner and then we will see delayed projects ever more and so on and so forth as I have mentioned before. Right now that is not the main theme as China/Stimulus/Interest rate are still great arguments for Long AUD
I am worried though that if RBA does not act it wont be the Mining/Housing/Banking sector that will bring down the house of cards but the Retail/Credit/Gov project sector is where we will see the first shoe to drop.
The day we see a drop in Terms of trade that is a head turner and then we will see delayed projects ever more and so on and so forth as I have mentioned before. Right now that is not the main theme as China/Stimulus/Interest rate are still great arguments for Long AUD