The Aussie has maintained its assault on the 80c level which we believe will be scaled in the coming months, the question we keep hearing is when will it top out? The answer is similar and as tricky as with stocks, there’s plenty of medium-term resistance in the 80-81c area but the trends up and surprises happen with the trend, plus we believe inflation will raise its head moving forward which is fundamentally bullish the local currency hence our view is similar to stocks, stay long and monitor carefully.
Not surprisingly as the market continues to unfold in line with MM’s current expectations our plans & stance haven’t changed a great deal but over 90% of investing is about being prepared and ready to act when stocks or the whole market becomes too cheap or expensive, at this stage we don’t particularly believe it’s either.
