About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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  • Russell Melhem

    Hi Guys

    Let us discuss the real AUD from someone who is living down under. I told readers in May that the Aussie was a power house, fundementally a top notch currency and a government that do not believe in printing money to solve debt problems.

    However what you will not hear is the following.

    1.Australia has the highest housing prices relative to disposal income in the whole wide world.

    2. This means Australia is a very interest rate sensitive country. Any rate hikes will see voter and economic backlash, internally. The consumer is struggling and living on credit card debt already.

    3. Aussies love imports more than exports. The GDP

    deficit cannot grow in a democracy that now thinks debt is a dirty word.

    4.Obama eat your heart out, The lap dogs of the Government the four and only major banks, the ones

    that we couldn't short sell due to a ban are tightening there lending and creating daily withdrawal limits. It is very difficult to get a line of credit from a bank. Lending criteria is very tough. Equity withdrawals are meet with many questions.

    5.The government is giving away up to $24,000 AUD for first time home owners and removing stamp duty taxes up to $15,000 AUD.

    6.New homes under $600,000 get 50% stamp duty rebates.

    7. The government is thinking of putting capital gains taxes on owner occupier, family homes. This will put further pressure on property.

    8. There is a shortage of houses because the state governments release land sales, this is like the diamond trade. Manipulated land prices.

    9. Australia has had a 50 year stimulus package, it is called government welfare and it is the best in the world. However welfare payments have remained steady of the last five years and not inline with inflation.

    10.If property is expensive so is the rent, rent has gone up 30% in Sydney this year!!!!. This is inflation that cannot be solved by interest rate hikes.

    11. Overall with the above factors and many that I have not mentioned. The RBA is talking up the dollar to about the 84.60-85.00 mark to buy back their US dollars they sold back in October, to keep the AUD above 60 cents.

    12. A strong AUD will effect Asia's recovery, it will bring short term investors and carry traders that will have a brothel effect on the Australian economy.

    13. My strategy will be to short sell the AUD/USD using good till cancelled CFD's. The AUD will oneday comeback to the the mid 70's price range, as every country knows a low currency means more exports, therefore more jobs and more tax.

    14.A message to the speculators and gamblers. If you treat the FX market as a casino the FX market will soon end your addiction the hard way.

    This information was provided on a general basis only. Please seek your own independent financial advice before trading.

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  • Russell, thanks for your long comment.

  • Russell Melhem

    Thanks Yohay, I made a good return last night shorting the AUD. Resources will for the next 3 years go continue to go through the roof and so will resource currencies. What all this means is a world that is beginning to prepare for an all out war.

    No matter what you hear or people say the EU will become only a 10 member union. The Euro will one day, soon become king.(Ask China and Russia). The EU are prepared for hyper-inflation.

    The EU is about the power of the Catholic church, the most powerful and wealthy organisation on the face of the earth. Who rules the undestructible Germans & Germany today?

    Forget politicians, follow the real decision makers that move the world.

    Therefore Buy, hold, sell and re buy:

    Gold,resources, resource currencies and Euro's I rest it at that.

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