hedging the currency does not reduce risk.
it just means if the Aussie dollar goes up, you win, but if it goes down you lose.
unhedged means if the Aussie dollar goes up you lose, but if it goes down you win.
it is a reversal of currency risk, not a protection against it.
and as commodity prices are again slumping, most people think it's highly likely the Aussie
dollar will fall.
