The $ has weakened significantly on the Euro recently. With both the Eurozone & Straya both looking like they're heading into recessions how do you guys see the currencies performing against each other over the next 24+ months?
The AUD is traded as a commodity currency, and also as a free-floating barometer of bullish/bearish sentiments about China. RBA cash rate are below 1% and signaled to fall further. The Euro has serious underlying issues, like negative interest rates. Hard Brexit is a near-certainty (which might actually be bullish for Euros) and Italy's government (makes Greece's government looks responsible) is close to collapse. However it is a much larger diversified economic base, the has accumulated a lot more capital. The ECB is far better prepared to weather the coming storm. If push comes to shove: I'd rather be holding Euros than Aussie Dollars if the goal is value preservation using the USD as a benchmark.
