Jim Vrondas from OzForex has just done a very useful Q&A in Reddit's Ausfinance section. Here's a sample:
Q: So according to The Age, the Reserve bank is now printing money to weaken the dollar are there any currencies/economies that aren't trying to weaken themselves that would appear to be smart to invest in?
A: With the developed economies so weak the focus by policy makers around the world has certainly been to try and export their way to growth, a devalued or low currency (it is all relative really) is an important (easy but not cheap) tool.
In summary they have adopted the Chinese weak currency policy without trying to be labelled a currency manipulator.
Rather than trying to pick the currency that is NOT being weakened its best to think of FX as a simultaneous exchange of two currencies so picking one that is likely to depreciate less than another is probably a wiser standpoint. So looking at cross rates like AUD/EUR or GBP/JPY as opposed to the majors might be a better alternative.
Head on over to ask questions of your own.
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