Australian dollar

Parity, why not. The OECD sees the AUD overvalued on a PPP basis by "only" 19%, which sounds a lot but pales in comparison to e.g. NOK which is 40% more expensive than the USD.

Parity is just another 10% away, putting the PPP difference at 29%, nothing we haven't seen before. Historically, major currencies have always reverted back to their purchasing powers, but that can take years, sometimes decades.

I have 25% of my networth in long NZD & AUD right now and to say I am nervous is an understatement. I think by November I will radically reduce the exposure. They can run to parity without me :cool:
 
I'm long NOK myself.... @11% Does feel a little "windy" up here doesn't it, and it's up every day like clockwork, like risk free money :cool:
 
That's a China play on commods right now. Personally, from a 6 month perspective, I'm looking to long USD/AUD (or short the spot pair).

The better fade, perhaps, is in AUD/CAD.
 
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