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To: yard_man who wrote (102934)	5/17/2001 12:28:36 PM
From: John Pitera	Respond to of 436258

They have lots of gold mines in Australia, and the AUD often moves just as gold does, they are highly correlated. So it just confirms the move a bit, much as if you are bullish when bonds are going up in price, and you think interest sensitive stocks will go up you want the BRK and XBD to be also going up and not diverging. It's not rocket science but, it can be a tell. Australia, produces quite a few commodity products, Copper and other base metals, Crude, wheat, wool, etc so also since Gold is said to be a proxy for inflation building in the system, the Aus economy and hence the dollar are positioned to benefit from greater inflation. They can sell more commodity products, at a higher price and as they convert foreign currency into AUD, it would bid up the price of the AUD. John