Erik Reuter wrote:

> On Tue, Sep 30, 2003 at 10:33:48PM +1000, Ray Ludenia wrote:
>> Australia has tied its economy to US,
> 
> In what way? Is the Australian currency pegged to the US dollar? I've
> noticed that the Australian stock market is one of the least correlated
> with the US stock market. Europe and the Far-East have much higher
> correlation with the US stock market.

The US is Australia's largest source of imports and the second largest
export market. Over a third of overseas direct investment in Aus is by the
US, and surprisingly, Aus is the eighth largest foreign owner of US assets.

There is more supporting info at:

http://www.dfat.gov.au/publications/aus_us_fta_mon/Chapter%202.pdf

http://www.petra.ac.id/asc/int_relations/australia_america/usa/economic.html

The A$ is certaily not pegged to the US$. When I visited the States in 2001,
we got US$0.52 for our dollar, yet it is now "worth" US$68. No wonder we
found it expensive!

Regards, Ray.

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