Risk markets have responded positively to the announcement of QE2. The RBA is in a tightening cycle and has just raised rates unexpectedly. China manufacturing data remains strong. So the up-trend in this market is in place and there is no reason not to go long. Correlation with my long palladium trade is quite high but that is desirable. I have put the trade on as half a position because I have also gone long EUR/USD.

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