EconomicsAustralia: Currency: Aussies' currency 'soars close to' USA's -- their both called 'dollars' -- so why not?

Wall Street Journal reporters Enda Curran and Geoffrey Rogow note the sudden t+tning of Australia's currency, "Australian dollar soars on rate decision" (Nov2,2k10).

The Reserve Bank of Australia surprised financial markets Tuesday when it tightened policy for the first time in six months in a pre-emptive strike to stave off looming inflation pressures being fuelled by a once-in-a-century mining boom.

The Australian dollar soared close to parity against the US dollar after the decision, which pushes Australian monetary policy closer to restrictive terrain for the first time since 2007. The move comes in stark contrast to the US and Europe, where central banks continue to keep rates at historic lows and are discussing possible further easing. The US Federal Reserve is widely expected ...

Yep, you can't get in to read further unless you buy your way in via a short-term subscription. Ta' 'ell wid dat!

-- EconoMix

EconomicsChina: Currency: trade of the Yuan against other countries, cut-rates from 6.8275 to 6.7980 (a drop of .0295)

If my calculations are correct, there's a difference of 0.0295 between Monday's rate of exchange and Tuesday's.   How many of the Chinese govt's Yuan will you get --


• for 1 American Dollar?

As the Market Pulse email text (the same online) reproduced below for semiotic analysis (and for this economics analysis as well) woud indicate, the USA has to take up the global slack and lag. Altho China has certainly lowered the cost of its currency in the last day, how evenly has the Peoples' Gov't conducted its price lowering, country by country?  China grants other countries better prices on the yuan in exchange for a basic unit of a given country's currency (euros, pounds, francs, deutsche marks, yen, rubles, etc.), better prices than it grants the USA dollar, even tho China holds scads of USA bonds (and those of many other countries too, three, four ... ).   The rate of exchange between China and the USA has been notorious for its one-sided favourablity to China.  This hurts America's balance of trade, a kind of further deficit each year --

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