We have been all over the Aussie Dollar (FXA, quote) lower trade and today hits fresh multi-year lows, and technically gave out at the important .9280-.9250 support area.
The IMF is out today showing increased Aussie reserves along with Loonie (CAD) as diversification basket of global reserves continues.
In my view, this is why you want to be short. There are many large investors and central banks holding Aussie dollars as a diversification and because it is one of the last AAA credits left.
Question, do you really want to be investing in a currency that is hinged to Chinese growth and spot prices for such things as coal and iron ore?
Once the gig is up there will be a run for the door. The market is already pricing that in.
