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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.

Source: We Have Been All Over The Aussie Dollar Lower Trade