Jun

14

"I love the AUD, it is up more than the S&P" - A DailySpeculations Reader

Below is a table with the Purchasing Power Parity "PPP" for some currencies as calculated by Bloomberg.

The US Dollar is approaching undervalued extremes that (historically) result in global macroeconomic shifts and realignments, and cyclical/secular bottoms. These realignments are beyond the attention span of most so-called professional traders.

So, buying the Australian Dollar at a 35% PPP overvaluation may be profitable for the next hour, but probably not the next decade.

Currency / % Over-Valued

Australian Dollar 34.76 %

Swiss Franc 31.75

New Zealand Dollar 30.53

Danish Krone 23.38

Euro 22.28

Canadian Dollar 18.9

Norwegian Krone 18.25

Japanese Yen 12.96

British Pound 12.31

Swedish Krona 1.07


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