I'm talking about the U.S. Fed hiking rates this month.
The world is anticipating a rate hike, and yet there is just so much going against such a move all of a sudden. The USD is becoming so strong that many are already saying it is TOO strong. All major currencies are still going ahead with QE (Euro, Chinese Yuan, Japanese Yen) and if the rate hike goes overboard, growth in the U.S. could be adversely affected.
Recently initiated a position in AUDUSD @ 0.6950. Yet it appears there is even further downside in the AUD as commodity prices continue to stay weak, China is slowing down, and the USD prepared for a rate hike.
Yet I am fairly confident the AUD cannot allow its currency to devalue so far below 70c.
Really don't know if this trade will work out but let us see.
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