The new record of Aussie in the early London trading: the level of 8.1 is now not so far. It is necessary to consider the extraordinary growth of Aussie in the future. Currency rose more than 10% over the past five weeks, by 33% over the past 10 months, and 79% from lows in late 2008. Downs of the U.S. dollar during these periods are partially reflected in the growth of Aussie, U.S. dollar has lost 3% over the past 5 weeks, 16% over the past 10 months and 16% with a peak in late 2008. Over the past 2.5 years, only two major currencies meet Aussie: AFRICAN RAND (an increase of 74%) and the Brazilian real (+71%).Over the past few days buying Aussie was very important, especially from Asian and Middle Eastern countries, which remained very interested in diversifying from the dollar as quickly as possible. Encouraged by data growth in Europe and Asia, as well as strong corporate earnings U.S., demand for the risk of unexpectedly increased, resulting in precious metals reached new highs, as well as a whole has increased the demand for the growing assets. Former Australian Prime Minister Rudd does not hurt the bulls, suggesting that there was little chance of intervention by the Reserve Bank of Australia to limit the effect of currency. Along with the sovereign demand and investor appetite for risky assets, Aussie continues to attract most of the trade flow Kerry, who is now a large number of traders and hedge fund managers. Over the past five weeks, the pair AUD / JPY rose to an impressive 15%.
As often happens with the Aussie, the potential for sudden loss of confidence and a sharp drop after such great results is a real risk. This is especially true now that the long positions of traders have grown so much and have a sense that the currency can not be wrong. In addition, the Aussie is now significantly overvalued. Bulls still definitely prone to Aussie and the bears cause condescending attention.
Translate this page
