Surprised to see AUD has put on 2 tenths of a cent since 10 am this morning??? This is running counter to risk assets including stocks and commodities. Seems like the RBA might need to do quantitative easing of its own to reduce the upward pressure on the exchange rate. The three largest economies whose currencies are used as reserves (US$, YEN and Euro) are undertaking some form of quantitative easing or the other. It is a race to the bottom and the AUD is being left behind or should I say up there?
Normally shorting the AUD was a hedge against adverse movements in resources stocks. No longer the case it seems. You can still lose if you are long resource stocka and short aud. Heaps.
