You’ve really got to shake your head when the “poster child currency for risk” continues to move higher in the face of looming credit crisis in China, possible war in Eastern Europe and a “soon to be announced” USD debacle in the states.
Or do you?
Doesn’t it make the most sense to “those of us in the know” that things generally go “higher” before going “lower”?
I mean really…….markets don’t “crash” from the lows! Markets fall from the “highs”!
Currencies really being no different.
I imagine in a couple of days ( or perhaps even within a couple of hours ) you can look back on this and say “Ya ya Kong was early as usual…damn! That Australian Dollar really put up a good fight there near the end”.
And that will be that.
At Zero Hedge:
UPDATE: It’s happened – China has suffered its first domestic corporate bond default as Chaori fails to meet interest payments on schedule and rather more surprisingly failed to receive a last-minute mysterious or otherwise bailout…(read more)