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.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.