Dennis Gartman, author of the Gartman Letter, and known on Wall Street as the Commodities King has endorsed the Aussie dollar. Gartman has made a name for himself by making shrewd predictions, chiefly in the commodities and currencies markets. The Gartman Letter is required reading for most Wall Street analysts these days. Gartman looks at the Aussie and Canadian dollars as a way to measure commodity demand. He believes when commodity demand is high, those two currencies will rally. As such, he is predicting a strong Aussie/Canadian dollar move versus the Yen. Most major commodities have been trending downward this year, but Gartman seems to be signaling a turnaround is in the cards. Commodities typically do well when investors are prepared to take on more risk.
we are well overdue some strength in the junior commodity focused stocks down here. The issue we face is that a strong AUD provides headwinds for non mining/resources sectors.