this dude must be long Aussie http://media.artdiamondblog.com/images2/GoodHumorIceCreamTruck-thumb-468x324.jpg
Parity, why not. The OECD sees the AUD overvalued on a PPP basis by "only" 19%, which sounds a lot but pales in comparison to e.g. NOK which is 40% more expensive than the USD. Parity is just another 10% away, putting the PPP difference at 29%, nothing we haven't seen before. Historically, major currencies have always reverted back to their purchasing powers, but that can take years, sometimes decades. I have 25% of my networth in long NZD & AUD right now and to say I am nervous is an understatement. I think by November I will radically reduce the exposure. They can run to parity without me
I'm long NOK myself.... @11% Does feel a little "windy" up here doesn't it, and it's up every day like clockwork, like risk free money
That's a China play on commods right now. Personally, from a 6 month perspective, I'm looking to long USD/AUD (or short the spot pair). The better fade, perhaps, is in AUD/CAD.