Comments from Saxo Bank chief economist Steen Jakobsen in the Australian Financial Review today
- "The first currency I will buy when the Fed hikes will be the Australian dollar,"
- "I expect an outperformance of the Australian dollar in the first six months of next year."
- The consensus "embedded" negative outlook for China is "simply wrong" ... Silk Road initiative will put $US3 trillion into credit facilitation and a lot of that will be spent on infrastructure. The demand for raw materials will be met by supply from Australia.
- In four of the past five rate cycles the US dollar has peaked around the first Fed hike
Australian Financial Review (appears ungated)
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This won't be a surprise to anyone who is considering a 'sell the fact' move for the USD once the Fed hikes
