So hated dollar started to show some strength in recent hours. Already, EUR/USD failed to put in new highs while USD index established new lows. Indeed, index was pushed by the strength of other currencies, among which I would cite Australian dollar, the biggest beneficiary of the reflation process.
Is this weakness real? I think, in any case, AUD/USD must be watched seriously as an indicator par excellence of the Chinese part of reflation. And let's not forget, that at 0.94, AUD /USD is just within 4 cents from the '08 high, - about a perfect shorting opportunity for someone who does believe in the near end of this fiesta.
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