Good day... And a Marvelous Monday to you! Well... I did end up going to Columbia this past weekend after all. Tailgated with my kids, and then saw a game that wasn't exciting until the last minute! All-in-all, a fun time. Speaking of fun times... That's what the currencies are having at the dollar's expense this morning, and while I've always said that the euro was the Big Dog, the star performer overnight is the Aussie dollar (A$)! The A$ is at a 2-year high VS the U.S. dollar, and is beginning to look a bit pricy, compared to the rest of the currencies in the world. But, we've seen this in the A$ plenty of times in the past. The A$ trades way past "fair value" because of the strong interest rate it pays.
The A$ is also getting some notice because the Reserve Bank of Australia (RBA) Gov. Stevens was in an upbeat mood in his speech last night, saying at one point that "Australia's growth in an increase from trend to something above trend, and that the fall in inflation over the past two years won't go much further."
This kind of talk brought the rate hike campers back in play... Although, I'm thinking that the RBA is finished with rate hikes this year. (more)
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