The Fed's QE3 has Brazil talking currency wars, and it's also pushing up commodity prices. This strategist sees a trade.
You can't really blame Brazil for disliking QE3. The country is trying hard to keep the real in check, and falling interest rates in the U.S. make that harder, so it's not really surprising that the finance minister has threatened to impose a new tax on speculative foreign investment.
Boris Schlossberg, managing director at BK Asset Management, is looking at another effect of the stimulus move.
"The QE story is interesting because it is clearly flaming some price inflation amongst the commodities across the world," he told CNBC's Scott Wapner. And for Schlossberg, a currency maven, that suggests a trade.
Schlossberg notes that the Australian dollar "has been the darling of the currency market for a very long time" because the country's fortunes are so closely tied to China. But with China's economy slowing down, demand for the minerals Australia exports will likely slow as well.
At the same time, commodity price inflation will lift the value of New Zealand's exports of wheat and meat, and the New Zealand dollar "is going to benefit tremendously," Schlossberg says.