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Strategies & Market Trends : Australian Shares and ADRs -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (64)	7/28/1998 3:09:00 AM
From: Moominoid	Read Replies (1) \| Respond to of 96

But I'm still puzzeled as it don't make any kind of sense to me.. What could the money changers be up too ? Japan is Australia's largest trading partner. From the Australian government perspective it makes sense to avoid either a devaluation or a appreciation against the Yen. They have intervened in the market - now it seems to bring the two back into line rather than defend the currency per se. As a result we get a depreciation relative to the US and Europe but are still appreciating relative to Malaysia/Indonesia/Thailand/Korea. This means we try to redirect our exports to the Western economies. So the government is interested in this relationship as well given the current crisis. Currency traders see Australia as an Asian Crisis Victim and are all trying to second guess each other on what the correct valuation should be. Somehow they've settled on the pretty simple idea of a fixed AUD/Yen rate. So there are various forces at work. Without more information I couldn't be more precise. But I don't think anything sinister is needed. David