Gigantic moves in the currency markets are not that rare as one would suspect. The Euro Dollar used to be at 0.80, it went to 1.60. It used to be 1 Dollar for 500 Yen, today... It used to be 1£ for 5 USD, today... It used to be 5CHF for 1USD, today... Not saying Aussie is going to double from here, but if could.
That's scary. Soon as we (AUD) hit parity I started to convert funds into USD. When AUD breaks, she's going to break hard.
As long as the US continues to print dollars, the Aussie and gold are going to continue to rise. If you debase the world's reserve currency, investors are forced to find a new safe asset. Gold is it. And you can't hold gold in US dollars so you might as well hold it in currencies where it is produced. The aussie is one of the worlds most significant gold producers and the economy in going gangbusters. I think $1.20 aussie to the dollar is a realistic target in the next 12 months. Short at your own peril.
It's strange, every time I go over there I never see them producing gold. Iron ore's Yes, gold.. no luck. I'm there with the metal detector thingie hoping to find gold scraps.
ha ha.. LOL.. saw what happened today.. I had a loss from the last 5 days. but I held on.. 1.003. 1.016 1.014. i kept hitting it.. finally today. I offloaded .. when I became profitable. from a -2K loss to +1.5K. it was a bit risky. got out at close today.. avg price was 1.008. and got out at 1.003.. i had 300K short.
monitor the chart... hit at above 1.01 cover below 1.005 or so.. but who knows how long this will last.. working like clockwork for the last 5 days.
this is back to its All time high. 1.018 today.. looks like a short squeeze or what ever. it should come back down. but first it iwll massacre shorts a bit more.. have patience my friend