Don’t get too excited about this vote on branding China a currency manipulator. There are several reasons for this.
The first is legislative. This is the first step of a very long process. The bill is still in the House of Representatives. It would then go to the Senate, the worlds greatest deliberative body. Deliberate is what they do, and they will deliberate this bill to death, of that you can be assured.
The bill will pass the House easily, so there is very little to wait for, really. IF commodity currencies dip on the vote, buy ‘em for a quick flip. DO NOT SELL AUD ON THE NEWS!
If the bill is passed by the Senate and signed by the president, (months down the road) then we will have something to worry about. Right now, it is of little more than a sign that China will be be a political whipping boy in the upcoming election…no newsflash there.
