A few waves of the dovish wand from Ms Yellen and some increasingly negative interest rates in Europe during March and just like that, markets are saved again. It is hard to deny the power of Central Bankers acting collectively. We are without doubt in a POLICY driven environment that can trump fundamentals in the short term. .......As much as these favourable policy developments are healthy for risk markets, they are unhealthy for Australia via the immense pressure they place on the AUD currency. A weakening USD via Ms Yellen only adds more fuel to the currency fire. We believe the AUD will continue to rally until the RBA resume cutting interest rates (as early as May – although this may not halt its ascent much but will help slow things down). Structural demand for AUD assets remains from international investors who remains buyers of AUD currency to settle Australian bond purchases.