Hmm, the past few weeks we've all seen finance stocks like NAB, ANZ, etc, jump to new highs.... and resource stocks like BSL, OST, RIO, and BHP lag and slowed down.
I'm wondering, is this all because of approaching rising interest rates which will lift the Australian dollar, reducing export earnings?
Whereas, with higher interest rates, foreign investors would change their cash into Australian dollars and put them in Australian banks to take advantage of the rates, benefiting the finance sector because of the inflow of capital.
Is my speculation anything to do with my observation? Or is there something else behind it explaining the phenomenon?