For Forex AUDUSD is the pairing of my choice as I consider Australia a second home and Singapore Dollar is too tightly regulated. Aussie on the other hand is one of the least regulated as well as free from Central Banks or Monetary Boards interferences. The Aussie had a spectacular run the last two weeks and had breach parity with the USD and in fact surpass it with impunity.

Last two days saw persistent attempts at breaching parity and it was finally broken yesterday night with a lot of rumors such as the capital controls in South Korea planned for Monday for instance. Together with China’s more than usual inflation and the fall in commodity prices, it was a double whammy for the AUDUSD Pair resulting in 100 pips drop for the Aussie as well as havoc in the Asian currency markets. The Bank of Korea had just stepped out to deny the rumors on capital controls but the fears are already implanted in the hearts of investors. The sell off wipe nearly all stops and writers with 20/20 hindsight visions are starting to write about how such meltdowns was already predicted.

For me, it cost me a few nights of sleep as I watch and benefited from the topsy turvy attacks on the AUD buying and selling using regular pattern of the breaking of parity. The thorough breach nearly caught me by surprise and I was honestly lucky to have squared off all positions. It is normal for me to be on long on AUDUSD for the carry trade but yesterday night, seeing the severity of the attacks, I hesitate to keep and had squared off all. Thankfully, it is a lucky break or even the carry trade lots will give me a huge loss.

We are looking at panic in the markets across the few zones at the moment. The Tokyo markets are having a tough time. I don’t know how many traders are wiped off the board with the drastic upheavals. Hoping for stability in Frankfurt and London markets later on.