Greece, Thailand and the resources tax

What a week it has been for the world economy, and subsequently the Australian one.

There is currently a great deal for investors to digest. All we need now is the announcement of a federal election! Greece's financial woes and the consequent spill-over of jitters throughout the Euro zone are casting a spell of nervousness over the rest of the world. Add to that the significantly heightened political tension within one of our major trading partner countries (Thailand) and the uncertainty surrounding the chances of the resources tax being passed by the Senate and its likely effect on the economy. It is a heady brew!

In the meantime, the All Ords has passed through 4400 and the Australian dollar has lost some of its recent gloss. The dollar's decline is attributable to the RBA's latest meeting minutes suggesting that the interest rate hikes might be starting to bite into demand pressures (as intended) and that we are close to the rate peak in this cycle. The fact that we as a nation are still heavily tied to the mast of global commodity price movements would also be a factor, with doubts about the strength of the global recovery. The world oil price, always a good barometer, is also falling.