CurrencyShares Australian Dollar Trust (NYSEArca: FXA) is a pure play on the movements of the Aussie dollar to the U.S. dollar. Currency ETFs such as this are used for hedging purposes and are intended for short-term investment, due to the nature of the currency market. [ETF Spotlight: Australia]
The Australian dollar is sensitive to commodity exports in Asia and emerging economies and to any fiscal and monetary stimulus in the U.S. , reports Micheal Rawson for Morningstar. For a longer term play on the Aussie economy, the iShares MSCI Australia Index (MNYSEArca: EWA) has better exposure to the economic growth within this continent. [Australia ETF Supported by Rate Cut, Data]
CurrencyShares Australian Dollar Trust
Tisha Guerrero contributed to this article.