Top 60 Senior Citizens

[greenpastures]

Average of the top 60 Bluechips with the highest daily trading liquidity / turnover. Study it. U may learn something about sentiment and why RBA raised interest rates (little to do with housing market IMHO). Chart generated & prepared from my own data. Not sourced from the internet. Stocks sorted in Alphabetical order;

ABC,AGL,AMC,ANZ,AWC,BHP,BIL,BLD,BSL,CBA,CCL,CML,CO H,CSL,CSR,FGL,FXJ,
GAN,GPT,HVN,IAG,IPG,JHX,LHG,LLC,LNN,MAP,MAY,MBL,MG I,MGR,MIG,NAB,NCM,
NCP,ORG,ORI,PBL,PMN,PRK,QAN,QBE,RIN,RIO,SGB,STO,ST W,SUN,TAB,TAH,TCL,
TEL,TLS,TOL,WBC,WES,WFA,WMR,WOW,WPL

If chart does not display due to bandwith limitation, try clicking;

http://www.villagephotos.com/viewpubimage.asp?id_=7554086

http://img.villagephotos.com/p/2002-10/60142/T60Blues-040109.jpg

[greenpastures]

Q. If the RBA did not raise interest rates when they did and how they did, would the Aussie Dollar be 90c to $1-00 by now in light of American weakness? Comments welcome. I'm not an expert in this field.

[OldRider]

I don't have any expertise in this area either,but my simple understanding was that increasing interest rates was more likely to strengthen the currency concerned.

[greenpastures]

The interesting thing oldrider was that the two downturns in the chart coincided with the interest rate announcements and the effect was close to immediate on the average ma of the 60 bluchips. As the interest rate rise at that time had obvioulsy not filtered through to the bottom line of any company (private or public) or any real-estate borrower (private or investor), one can speculate that the response was psychological which was possibly what the RBA intended (to dampen the widening differential between the Strong Aussie economy and the much weaker American counterpart).