Australia's central bank bought its currency for the first time in six years to stem the steepest one-day drop since it was allowed to trade freely in 1983. The global credit crunch has made financial markets ``extremely skittish,'' central bank Governor Glenn Stevens said today on Queensland's Gold Coast. ``Where market conditions are disorderly, we are prepared to intervene from time to time.'' http://www.bloomberg.com/apps/news?pid=20601087&sid=a_pOLx50Esj4&refer=home Translate : take care and work with Stops...
As if thats the first time........those nasty , disorderly markets, darn them. Mean reversion guys must be loving this, 79c has been a solid valuation for a long time. How much value does the market place, in the fact we got shitloads of coal, oil, gas, gold, copper, URANIUM, beef, wheat, wool,and other things....... Please sell us some water desalination technology,, our leaders are idiots, this joint will be like the f*n sahara desert in 20 years
Having bought US$200,000 when the local unit was .8680 less than three weeks ago suddenly my US Dollar holdings have increased almost 10% converted back to A$. Time to get smashed and celebrate I will blow a joint for ya all! Note: I did see the local unit get as low as .7698 at one stage
Funny the AU central bank thinks it can stem the short them effects of millions and millions of little forex accounts blowing up all over the world @ 50x leverage.
Sort of describes the national consciousness. 'Aussie's' think they really matter in the scheme of things. We are just a little economy perched on the Asia Pacific rim selling ore and raw materials to the real economies like Japan, Korea and China. The majority of the locals think we are extremely important AND matter! The reality is we don't really matter that much. We could get blown off the face of the earth and I don't think the world economy would miss a chug. They would just pile into the Kiwi dollar even more and access their raw materials and ores from the Russians and Brazilians.