{"id":8530,"date":"2011-12-06T04:42:27","date_gmt":"2011-12-06T09:42:27","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=8530"},"modified":"2011-12-06T04:42:27","modified_gmt":"2011-12-06T09:42:27","slug":"moderate-bullishness-aussie","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2011\/12\/06\/moderate-bullishness-aussie\/","title":{"rendered":"Time to Moderate Bullishness on the Australian Dollar"},"content":{"rendered":"

This is an excerpt from an article I originally published on Seeking Alpha on December 5, 2011. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

The Australian dollar was a particularly strong beneficiary of last week’s bullish euphoria. Although the dollar index has only lost about 1% since its most recent peak on Friday, Nov 25, the Australian dollar surged against all major currencies. The Aussie gained 5% over the U.S. dollar (note the Aussie is not a member of the dollar index).<\/p>\n


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\"The<\/a>
The Australian dollar jumped sharply against the U.S. dollar but remains well off its highs for the year<\/figcaption><\/figure>
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{snip}…The coordinated action by central banks to ease borrowing terms for U.S. dollars<\/a> caught a lot of attention and overshadowed the even more important news that China cut its reserve requirements for commercial lenders<\/a>. Both actions confirm the fragile condition of the global economy, but China’s action signals that monetary policy has clearly switched from tightening to accommodation. It underlines the Reserve Bank of Australia’s (RBA) decision on November 1 to cut interest rates<\/a> for the first time since April, 2009…<\/p>\n

{snip}…<\/p>\n

Other implications for my moderating bullishness on the Australian dollar:<\/p>\n