Forex Investment and Currency Trading

Australia seems the better bet between Oz and New Zealand as in Australia you have a more hawkish central bank and early signs of a rekindling of the M&A boom after yesterday’s announcement of a A$13B AUD-positive M&A. The move lower in gold is not bullish Aussie, but on the other hand copper and the CRB are still very close to the all-time highs so the bloom is not yet off the commodity rose. Gold is $140 USD off the highs and Ozzie is still 0.9385 so you could argue it has held in very well. Some have begun to call the commodity story a bubble but if that’s what it is, we have not had nearly enough insanity to call a top yet. I am finding people use BULL MARKET and BUBBLE almost interchangeably these days. But every bull market is not a bubble. Meanwhile, the US recession that was forecast by everyone still has not arrived (and may never arrive), Baltic Dry Freight is up around 9,000 and the maritime shipping stocks are at their 2008 highs. Decoupling is alive and well.