AUD/USD hedge for an uncertain outlook

BackgRound: The AUD has had an eventful couple of years, reaching a high of 0.8005 in early 2004, correcting to just under 0.6800 before making another peak close to 0.7945 towards the end of 2004. There are a number of reasons why the AUD should remain firm for the first half of 2005, not least the sudden resurgence of rate hike expectations after a long hiatus -- the RBA statement on February 7 openly stated that the likelihood of a rate hike had increased. However, the USD rebound seen so far

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