Let's just say there are some enormous Long positions being held in the Aussie. It has gained a bit of ground against the USD this week,Hasn't it?
there is still a lot of hot money flowing to aussie. wait until those money leave Aussie, and we see both real estate and currency crashing..
Long88 has touched on a important reason that the Aussie is staying propped up The Amount of USD flowing in from China.....OH MY GIDDY AUNT!!
Has there been any discussion in Fx circles about the IMF's wish list for a currency reset? And if so, how do you see it play out for the A$?
The amount of hot money inflows into Australia seems to be increasing. I have no idea what this means longer term, but it does have some immediate distorting effect on the local real estate market.
Its is also along with other factors buggering around with the Value of the Aussie. Keep an eye on the USD though........