Australian Investment Blog

Good morning everyoneOverviewLast night the $US plunged the most in 7 years after services data reignited concern over the health / strength of the US economy.As would be expected, commodities denominated in $US rallied strongly, perfectly illustrating their inverse correlation to the US currency. The recent multiyear bear market in commodities is not just about simple supply and demand; a significant correction in the $US will send commodity prices soaring.It should be remembered that the vast majority of economists, plus investment houses, are predicting the $US higher and commodities lower hence a countertrend move could be very dramatic.Market Matters "big call" for 2016 is a change in trend for the $US which will send commodities higher.