I'll be in St. Kitts, West Indies this week...

I'll be speaking at the Sovereign Society's Emergency Money Summit all this week in St. Kitts.

I'll try to keep you posted on what's going on and what I see happening out there as best I can from the island while I'm there.

In the mean time....

China's inflation is still growing at the fastest pace in over 11 years. Look for China to have to respond by raising the value of the yuan evey more quickly in the future than they have in the past. Those of you that are in the Asian CD with Everbank.com are loving news like this.

Also, Australia's central bank said that inflation could grow to 4% and that's why they considered hiking rates recently by 50 basis points rather than 25 basis points. So you can see that they are ready to "turn the fire up" a bit if needed to help cool inflation. This could "stoke" the Aussie dollar and cause it to head higher.

The only downside to this "high exchange rate" of course is that it will evfentually take a toll on their exports. It's already starting this process as the AUD/USD holds above the .9100 level.

Also, the Bank of Canada said it stands ready to lower rates once again to "aid" the recovery of the slowing global economy.

News like this really bodes well for the AUD/CAD position that I've been bringing your attention to lately.

Both AUD/USD and AUD/CAD have recently broken out and headed higher on the hourly charts for both AUD/USD and AUD/CAD. This trade probably has a little more steam left in it.

The land "down under" really has been "on top" lately to say the least. Buying from China has fueled their economy greatly in recent years and has caused the economy to expand for the last 16 years.

The central bank was recently quoted as saying that they didn't think inflation would ease up to their "comfort zone" of 3% until the end of 2009 or early 2010. That's something! So its thoughts like that, that keep the Aussie dollar well supported when many high yielders are coming down.

So the Aussie dollar is in a class of its own right now.

Sean Hyman
Editor/Trader
www.money-trader.com