By Tim Seymour
We have been all over the Aussie dollar (FXA) lower trade. Today hits fresh multi-year lows, and technically gave out at the important .9280-.9250 support area.
The IMF is out today showing increased Aussie reserves along with Loonie (CAD) as a diversification basket of global reserves continues.
In my view, this is why you want to be short. There are many large investors and central banks holding Aussie dollars as a diversification and because it is one of the last AAA credits left.
Question, do you really want to be investing in a currency that is hinged to Chinese growth and spot prices for such things as coal and iron ore?
Once the gig is up, there will be a run for the door. The market is already pricing that in.