Aussie Still Strong

Posted on February 28, 2008
Filed Under AUD/USD |

For those of you following the Australian Dollar it has breached the 0.94 level sooner than I anticipated - I originally said by the end of March but it raced ahead of itself as a consequence of recent chronic dollar weakness.  The Aussie has also risen against the yen which tells us that risk appetite is perhaps beginning to return to the market as the carry trade is once again in fashion.

Both pairs are always worth trading for both intra day and longer term traders given the liquidity and interest rate differential.  Also as gold continues to climb the Australian Dollar becomes ever more attractive.

Comments

2 Responses to “Aussie Still Strong”

  1. Sol on March 3rd, 2008 7:22 am

    Hi Anna:

    You know I really need to start following your advice as it’s been quite exceptional lately : ) . Congrats on the analysis of the Aussie. Now here we are and the AUD is down going into the AUD Reserve Bank meeting. So any ideas on the drop the last two days i.e. is it carry trade exits or nervous repositioning ahead of the RB meeting? Would you advise entering long (say AUD:JPY ) before this meeting on the pull back ?

    Thanks for your generous efforts as well!

    Sol

  2. admin on March 5th, 2008 5:49 pm

    Hi Sol
    thanks for your kind words. I have answered your questions via a post as I would like to share my views with other readers.
    Regards.
    Anna

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