Good day… A pretty quiet day in the currencies yesterday, with little or no movement until the overnight session. Overnight we’ve seen some slippage in the yen with more Bank of Japan jawboning the currency down. One of my fave currencies, Aussie dollars, finally hit the psychological level of 80-cents. This and more on a Tuesday morning, two days before I leave for my spring vacation! YAHOO!
OK… First the good news… I’ve long said that Aussie was an 80-cent currency, and I noted to the people on the desk yesterday that it was oh-so-close to that level, and I hoped it didn’t disappoint us like sterling did when it got oh-so-close to the 2.00 level. But as I turn on the screens this morning, there it is, right before my eyes! Aussie dollars trading at 80-cents! This is the highest level for the Aussie dollar since 1996.
So… Now you ask, “Is that it for Aussie?” Ahhh grasshopper… That’s a good question… And I don’t know anything more than the next currency analyst, but my opinion is no! There’s just too much “good stuff” going on in Australia, and with high yield currencies really doing well right now, I expect more gains from the Aussie dollar.
I could say that I expect it to get to… No wait! That’s like going ahead and putting your head on the slate for the executioner! But, if you ask me really nicely… I will tell you that I wouldn’t be surprised to see it stretch five more cents… But you can’t hold me to that, because you asked nicely!
Oh, and it’s not just Aussie that’s moving higher in the South Pacific… Kiwi has crossed the 70-cent level.
for The Daily Reckoning Australia