Currency markets are still adjusting after Fed Chairman Ben Bernanke gave everybody more than expected on Wednesday. The Fed surprised many by confirming it would taper stimulus this year and sooner rather than later as the U.S economy continues to improve. The aussie and EM in particular are taking a hit as investors already move funds back into the greenback on expectations of higher yields in the U.S. against those elsewhere. Further moves will happen over time but the cyclical bottom in the dollar hinted at two years ago has definitely consolidated and while no one will make money on a 10-year uptrend, the certain bet is that despite day-to-day gyrations, the dollar will be a lot higher a decade from now. The Australian dollar is trading around a three-year low against the U.S. unit and the euro. Asian EM such as the won, also losing ground dramatically to the U.S. dollar. A weak Chinese manufacturing report hasn’t helped the aussie or Asian currencies but the sentiment shift began in Washington on Wednesday and will remain the driver globally for months to come. The Fed has signaled that the extraordinary stimulus measures put in place to combat the Great Recession are coming to an end.