Tuesday, June 29, 2010

Marc Faber June 16: "Short the Australian Dollar" (AUD/USD)

UPDATE: "What’s up with commodity currencies?" (AUD/USD; CAD/USD)
Original post:

Via Contrarian Investors' Journal:
And as a special tip, I think I would short the Australian dollar, because talking about a housing bubble, Australia has 10 times a bigger bubble than China. In Australia you have what you said we don’t really have in China, namely the low leverage that we have in China, we have the opposite in Australia, very high household leverage. … So I think a big downfall is about to happen.
From FXstreet via NASDAQ:

USD appreciates against the AUD and NZD
The AUD/USD continues on its intraday plunge, currently trading around 0.8570, a fresh two-week low for the pair. After some volatility at the session opening, the AUD found a downward trend that shed 170 pips.

The Kiwi's session followed suit, plummeting 1.69% intraday versus the 1.70% of the AUD/USD and currently trades around 0.6959, a 12-day low for the NZD, as risk aversion takes over markets.
Sorry about the delay in passing on Dr. Faber's tip, it can be difficult keeping up with the man.