(This is an excerpt from an article I originally published on Seeking Alpha on October 21, 2013. Click here to read the entire piece.)
The Reserve Bank of Australia (RBA) must be getting a bit antsy at this point.
After working hard to drive the Australian dollar (FXA) downward in an on-going effort to rebalance the Australian economy, the currency not only seems to have bottomed for the time-being, but it also appears now to be breaking important barriers against a spectrum of major currencies.
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With this quote the RBA seemed to take solace that the Aussie was at least still below its peak. {snip}
Source: ASX RBA Rate Tracker
The charts clearly show an Australian dollar than continues a strong rebound.
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Source for charts: FreeStockCharts.com
While I seem to have successfully called the end of the Australian dollar’s decline, the continued strength has caught me flat-footed. {snip}
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Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on October 21, 2013. Click here to read the entire piece.)
Full disclosure: net short the Australian dollar