Australian (ASX) Stock Market Forum

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I also want to add:

inflation can be linked to the currency;

if the AUD falls by let's say half, oil and related (ie food ,imports, etc) would jump; as Australia does not manufacture much anymore in a substantial manner, most of what you buy at the supermarket or even at Bunnings would double (or at least jump), even some food  price would jump: why would a farmer sell in Oz if he can get twice on an oversea market


So inflation can be linked to currency;

in normal situation, the RBA would raise rates and so increase attraction of the AU dollar so would compensate, but not always as clear cut...

And guess what, the AUD is going down with the end of the mining boom..


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