Aussie Dollar opening the window of real future growth potential? (Black Swan Currency Currents)

Aussie: If it is the key risk asset currency, it may be in trouble!

I think we need only look at one chart to understand the vulnerability of risk assets fully-priced for future growth; it is the global purchasing managers' index and it shows all the major countries turning over that the same time. This is why we continue to believe that deflation is still very much in play-liquidation of leveraged positions is deflationary.  Liquidation of leveraged positions flows into a real economy already showing weakness, further exacerbating demand, as collateral values are whacked.  No rocket science here ...    Currency Currents 9 June 2011