Could someone please explain to me why Australian dollar falls down so much against the US ? Thanks. I was hoping that the index falls so that I can buy more, but the $ AUS falls instead. I am just starting to collect shares at the moment, it's my first few months. Thanks Kelly
The ASX index(s) (200, 300 or whatever) are made up of Aussie company's, specifically the biggest public ones. These trade in Aussie dollars so the AUS/USD isn't relevant to their cost, past what it does to the underlying businesses. ASX 200 isn't directly correlated to AUD/USD exchange rates.
The ASX 200 isn't just made up of Aussie Companies ! Some of the great performers are from NZ based companies and listed on the ASX with dual listings, It is where I prefer to look as it is overlooked and ignored and you can get an indication of price movements 2 hrs in advance from the NZ when their exchange opens, eg A2M, XRO SKO, SM1, PPH,SKT, STG KTD and many more. You can get listings from OS that are too small to list overseas and get small cap stocks and offshore exposure before they get noticed by analists and sheeple.
