A lot of currency traders learned a big lesson this week; one that bears discussing.
Since last December, the Royal Bank of Australia has been hinting at raising rates. The Aussie economy had been doing well and showed signs of overheating. Prices for food, housing, beer and just about everything has been rising but not at an alarming rate. Well, some AUD traders made a big mistake. They anticipated the “promised” rate increase the RBA had been hinting.