Prominent money manager Stanley Druckenmiller has called on investors to short the Australian dollar, arguing that commodity price volatility, high levels of household debt to GDP and large inflows from central banks will weigh on the dollar's value, according to The Australian Financial Review.
“We think the AUD will come down and will come down hard,” Mr Druckenmiller told an audience of hedge fund managers in New York, according to the AFR.
Mr Druckenmiller said he expects the Reserve Bank of Australia (RBA) to continue to cut rates even after the bank's surprise move to cut its benchmark rate to 2.75 per cent earlier this week.
Investing giant George Soros was speculated to have made as much as $60 million by shorting the Australian dollar in the hours before the RBA's decision earlier this week.
Mr Druckenmiller told the audience in New York that the dollar's strength is unsustainable in relation to cost of living.
“I have a friend at Goldman Sachs, and he went over for easter and said a burger was $22,” he said, according to the AFR.
“He then went out with eight children and six adults and the bill came to $3,400.”
Prominent money manager Stanley Druckenmiller has called on investors to short the Australian dollar, arguing that commodity price volatility, high levels of household debt to GDP and large inflows from central banks will weigh on the dollar's value, according to The Australian Financial Review.
“We think the AUD will come down and will come down hard,” Mr Druckenmiller told an audience of hedge fund managers in New York, according to the AFR.
Mr Druckenmiller said he expects the Reserve Bank of Australia (RBA) to continue to cut rates even after the bank's surprise move to cut its benchmark rate to 2.75 per cent earlier this week.
Investing giant George Soros was speculated to have made as much as $60 million by shorting the Australian dollar in the hours before the RBA's decision earlier this week.
Mr Druckenmiller told the audience in New York that the dollar's strength is unsustainable in relation to cost of living.
“I have a friend at Goldman Sachs, and he went over for easter and said a burger was $22,” he said, according to the AFR.
“He then went out with eight children and six adults and the bill came to $3,400.”
