Wed June 3 - The pain trade, page-52

Yes, the AUD has gone up nearly 20% since the march low. That is worth about another 250-300 points on the xjo in real terms. The AUD is about to break 70c. There seems to be a currency war in play. Despite the drop in the USD, the USD/Yuan remains at an all time high because China continues to devalue its currency to make its exports cheaper. Add to that zero interest rates, and everybody moving their money out of US bonds and into the market (risk on) it seems likely that the USD will continue to languish and the AUD will continue to go up and markets will again break their all time highs.

The Dow is up 37% since March. How did we do it? Go figure.