Above is an interesting interview on CNBC video with Todd Elmer, Currency Strategist at Citi, explaining why now is the time short the Australian dollar. He says a slowing China has led him to change his previous bullish call on the currency.
While I’m no currency strategist, I agree with his sentiments. The economy is weakening as the mining boom (both commodity prices and capex) unwinds and interest rates are highly likely to move lower, narrowing the interest rate differential.
The market seems to agree too, with the AUD falling by 1 cent to $0.94 today against the USD, and is down around 8% over the past month.
