However, the currency ETF is sensitive to commodities and tends to sell off when investors worry about growth in emerging markets. Some say the currency is correlated to emerging market equities and can be used as a barometer for demand in that area of the globe. [Why the Australian Dollar ETF is a Proxy for Risk]
The Australian dollar ETF has been trading lower after China cut its economic growth forecast and on reports the country’s steel production is slowing. [China ETFs Fall on Growth Concerns]
Over the past 10 months, every time the Australian dollar broke support, it resulted in at least a 7% decline for the S&P 500, according to Kimble Charting Solutions.
CurrencyShares Australian Dollar Trust
