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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (10203)	10/8/2008 12:09:38 AM
From: John Pitera	Respond to of 33421

Hi OX, and what's amazing is that on balance cutting a country's reserve bank rate hurts a currency on it's interest rate differential. But the AUD has always been viewed as a proxy commodity currency.... it often traded with Gold in almost lock step in the second half of the 1980's. I posted on this thread 3 months ago where the RBA Reserve Bank of Australia was not expecting to see inflation targets move back down into the top end of their acceptable range until 2010. This was in June or July and it shows how the entire world outlook on commodities has had the biggest reversal since 1980-81 since the tops in Crude and NG on July 2nd and the gold top on July 15th. I believe the precious metals have a stonger tailwind relative to the energy complex as global energy consumption should continue to contract into 2009. John