From The Gowdie Letter (AUSTRALIA)-
The US market posted a 200-plus point gain overnight, so the ASX should start the day well.
All the talk about the Fed possibly raising rates a whole 0.25% in June or July obviously did not dampen trader enthusiasm.
The prospect of a higher US cash rate has strengthened the US dollar.
A month ago the Aussie dollar was nudging 78 US cents; today we’re under 72 US cents…an 8% fall.
Gold too has suffered from a stronger US dollar. Earlier this month the precious metal was nudging US$1,300; last night it was trading at US$1,227.
For Australian gold investors it’s not all bad news. The 6% fall in the USD gold price has been offset by the weakening Aussie dollar.