Impossible to weaken every currency. The opposite number has to go in a counter direction, and with all the opposite numbers also trying to weaken, the AUD had a bit of a job to do. Can't beat them.slowkey wrote:Talk of RBNZ intervention has hit the NZD hard. I just pulled all trades on the NZD. Some at a loss. This could spiral out of control. What the Bank will actually do is unclear but talk was enough to weaken it. The cause was statements of actual possible intervention by Wheeler.
I still think the emerging nations will take the brunt of it, so that the rest of us can continue to enjoy our caffè latte! But this also has limitations - I doubt some of the more volatile countries will wear it for long, before they come out with their pitchforks and scythes.
http://www.abc.net.au/news/2013-05-08/o ... ne/4678110
http://www.abc.net.au/news/2013-05-08/k ... rs/4676400
Unfortunately in the case of NZD, whatever affects the AUD will have influence on it too.
The undeclared, unacknowledged Currency War is the big elephant in the room right now, and the brown stuff is hitting the spinning thing.
The move by the RBA will be futile. Australia can no longer control its currency. The only way to survive this, is to peg the Aussie to the USD at parity (which would be acceptable) or lower, but that dog ain't gunna hunt either.
Look for the AUD to rise ... and rise ...
