October 10, 2006 at 10:03 am by Tom Lydon
The Australian dollar has a high correlation with the price movements of gold, although the exchange rate is impacted by many other factors.
Seeking Alpha points out "the of the newest ETFs, CurrencyShares Australian Dollar Trust (NYSE: FXA - News), holds a portfolio of Australian Dollars and pays the country’s overnight rate, which is currently 6%. That rate is expected to remain stable for the time being."
"The Aussie dollar has been under pressure due in part to the declining prices of gold and copper, which the country exports in large quantities."
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.
Tags: Australian Dollar, Copper
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