Well - maybe not. I find it hard to believe that the carry trade is ending so soon. I love the durden - but like all great nihilists, he really seems to want it to end too much.
Nevertheless usd strength and lower treasuries yield patterns look to be holding. So weaker AUD for now? I'm not convinced that any thing longer term has been fixed.
Interesting to see how the CIT thing plays out - and whether the fed is gonna have to back stop - whether another chain reaction will be let loose.
So it might well be a good time to get into aud gold. Also a chance to test whether my thesis about gold trading on the reflation story is right.
