The trend is our friend…and right now, the trend in the Australian dollar is up, up, and up.
A couple of weeks ago, we took note of the rally in the Aussie – and decided to initiate a position. Boy am I glad we did…since that time, the A$ has rallied nearly 4-cents, and is currently sitting above the $0.77 mark!
Can the rally continue, or has the A$ come too far, too fast? If you’re trying to decide what to do with your position – or deciding whether you should initiate one here – I’d highly recommend checking out this informative video on where the Aussie could be heading, courtesy of INO.com’s Adam Hewison.
As you may recall, I expressed concern over the weekend that the Aussie had not yet decoupled from stocks. Well our favorite currency analyst, Everbank’s Chuck Butler, believes the Aussie may be close to cutting this link:
So, as I just said, Tuesday saw the currencies trade right back to the levels they enjoyed VS the dollar last Thursday, before risk assets began to sell off on Friday. These are the types of trading patterns you normally see when the assets involved are getting ready for a break out… A jail break… Tonight there’s going to be a jail break!
OK, I’m not saying that the jail break takes place tonight, I just broke out in a song from the 70’s… That’s all… Seriously though, I hope we’re seeing a return to fundamentals.
What’s the easiest way to trade the A$? Check out the ETF FXA…that’s probably your best bet.
Or, if you’re looking for a way to diversify your personal savings, you can check out a foreign currency account from Everbank.
Further reading on the A$: