We have an even nicer opportunity to buy some Aussie dollars.
From the Daily Pfennig’s Chuck Butler:
The Bank of Canada (BOC) did leave rates unchanged yesterday, as expected… The Bank said that “against a backdrop of robust global economic expansion and strong commodity prices”, Canada’s “economy is now operating further above its production potential than had been previously expected.” The went on to warn about the risks of a global slowdown.
Makes you wonder why they kept the dust covers on interest rates, eh? Well… I think I explained all that yesterday, so I won’t get into it again… But, the BOC is walking in tall cotton right now, and they had better be careful… Runaway inflation could hit their economy in a NY minute…
So… With the BOC warning about a global slowdown, the Commodity currencies got sold… So… One Monday, the high yielders got sold, and on Tuesday the Commodity currencies, many of which are also high yielders, got sold… One would expect a move similar to this given the strong upside move of the Commodity currencies recently. So… Hold on tight, use your seatbelt, and keep your arms and legs inside the vehicle at all times!