A CIBC excerpt on the Australian dollar
- Australian dollar pushed up by “fear of failure” and central bank stimuli
Said in an environment like the current global environment, AUD shouldn’t have done so well, but it did (CIBC says it’s the only one in this category)
- Investors must take into account the massive amount of liquidity that global authorities have injected into the financial system.
- These are not your traditional “free” markets where prices deviate from fundamentals
- potential sales, risky behavior, will be much less orderly and perhaps more frequent