(This is an excerpt from an article I originally published on Seeking Alpha on May 6, 2014. Click here to read the entire piece.)
The Reserve Bank of Australia seems to have abandoned efforts to push the Australian dollar (FXA) around. The latest monetary decision contained no surprises and looked like a near carbon copy of the few before it. The April and May statements are so similar, I had to reread the May statement to make note of the subtle adjustments.
{snip}
In other words, monetary policy is on cruise control in Australia. Perhaps the only immediate catalyst on the horizon that might interrupt this regularly scheduled programming is the unfolding resurgence in housing.
Appropriately, the currency has essentially gone nowhere (versus the U.S. dollar) since the last decision. It is slightly weaker against the British pound and Japanese yen.
Source: FreeStockCharts.com
Under the current circumstances, I find it difficult to get overly excited about the bull or bear case on the Australian dollar. {snip}
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on May 6, 2014. Click here to read the entire piece.)
Full disclosure: net short Australian dollar