DislikedThere seem to be a lot of fundie talk here. Anyone caught up on the news some months ago that aussie had officially become a reserve currency? At that time the speculation was that aussie was too 'high' and how low 'they' would push it down. Even if RBA cuts rate again, it's still the highest yielding currency. At some point it would become sufficiently 'low' enough for some reserve managers to step in. I actually have lower target for aussie to reach by the end of this year, but given the compression type price action, short term some bounce might...Ignored
We can argue that equities will crash and so forth. However, I don't see a major spike for another 200 pips or so. That's not a lot. Also, I don't believe the positive (long) carry trade will resume until equities burn out.
When the facts change I change my mind, what do you do sir