Aussies country wide can now say "Dollars up!", among other things, as the Australian dollar has risen against the U.S. dollar. The exchange traded fund (ETF) iShares MSCI Australia Index (EWA) is also up 19% year-to-date. The threat of higher interest rates and a real esate bubble are now dormant. Carl Delfeld of ETFXRAY.com reports consumer spending and confidence has remained strong. The retail sector has re-fueled speculation of a budget plan to cut taxes and increase spending.

Another way to take advantage of the Australian stock market and this economic run is the CurrencyShares Australian Dollar Trust (FXA). Remember Australia is in a position for the Asian growth spurt, commodity boom and market reforms.

Read the disclosure, as Tom Lydon is a board member for Rydex Funds.

Tags: Australia, Australian Dollar, Commodity ETFs, Currency ETFs, Sector ETFs