DislikedWhat's retaining AUD from skyrocketing to $1.00. The FED obviously wishes to devaluate USD so it should be up up up from here on out...Ignored
- #24,261
- Oct 12, 2010 10:12pm Oct 12, 2010 10:12pm
- | Joined Jun 2008 | Status: Professional Frontrunning Troll | 2,312 Posts
- #24,265
- Oct 12, 2010 11:39pm Oct 12, 2010 11:39pm
- | Membership Revoked | Joined Oct 2010 | 2,745 Posts
- #24,268
- Oct 12, 2010 11:50pm Oct 12, 2010 11:50pm
- | Joined Jun 2008 | Status: Professional Frontrunning Troll | 2,312 Posts
- #24,269
- Oct 13, 2010 12:01am Oct 13, 2010 12:01am
waiting for a good support to load some longs. to the up side. iS THE ECONOMY REALLY STABLE IN AUSTRALIA? ANYONE FROM AUS. Looking at 50% fib and strong support confluence 0.9828. Anyone think otherwise
PS: I don't think RBA will increase rate if AUDUSD is still too high like this.
- #24,271
- Oct 13, 2010 12:21am Oct 13, 2010 12:21am
only if by fine you mean overpriced, then yeah. FHOG + FHOB what a bloody joke. Cash incentive to get into the market = opportunity for sellers to jack up the price by 150% the grants.
. Price is where transaction happened. Someone willing to buy and someone sell. FHOG and FHOB is the way the government try to avoid depression. Small businesses rely on housing sector. Consumer purchasing power also stongly affected by house price. You have seen what happen in the US as house price collapsed. You may think stuff here is overpriced (even AUD
) but if you were lived here then you won't see it as a problem as every people also pay the same price for goods and services.The government wants people to invest in housing even though they may know that someday the bubble will pop
. They keep interest rate high and house price high to attract foreign investors in housing and mining sectors to keep the economy going on at least in near future (imagine that you have the natural resource but don't have the money to buy tools to extract it from the earth then it become useless). They use the economic doctrine called running account deficit (like the US) to finance their economy the same as you run business use loan money .
- #24,274
- Oct 13, 2010 2:44am Oct 13, 2010 2:44am
- | Joined Feb 2010 | Status: Trader | 1,085 Posts
Use me as a contrarian indicator 
- #24,276
- Oct 13, 2010 3:15am Oct 13, 2010 3:15am
- | Joined Feb 2010 | Status: Trader | 1,085 Posts
Use me as a contrarian indicator
- #24,277
- Oct 13, 2010 3:18am Oct 13, 2010 3:18am
- | Membership Revoked | Joined Oct 2010 | 2,745 Posts
- #24,279
- Oct 13, 2010 4:43am Oct 13, 2010 4:43am
- | Joined Jun 2008 | Status: Professional Frontrunning Troll | 2,312 Posts
There is nothing called overpriced or overbought
FHOG and FHOB is the way the government try to avoid depression. Small businesses rely on housing sector. Consumer purchasing power also stongly affected by house price. You have seen what happen in the US as house price collapsed. You may think stuff here is overpriced (even AUD
The government...
The Government housing boost/grants were anything but a response to stave off depression but rather an opportunity to push prices up to keep all those foreign investors happy. ATM the predominant push in foreign property purchases is coming from Asia, which is also the same place and the sole reason why the mining industry is still doing so well. Something happens there and you're gonna see some serious exodus from the Aussie markets. For the moment I'm really interested in this exchange rate cold war that seems to be brewing.
Here's a pretty little chart i made (data courtesy of ABS) spanning back around 8 years. Note the HPI rising about 2.5x Income through that timespan
- #24,280
- Oct 13, 2010 7:56am Oct 13, 2010 7:56am
- | Joined Feb 2010 | Status: Trader | 1,085 Posts
Use me as a contrarian indicator