Due to Australia’s status as a major gold-producing nation, the Australian dollar is not complaining about SNB canning the euro peg. After losing almost 7% last year, the CurrencyShares Australian Dollar Trust (NYSEArca: FXA) entered Thursday flat for 2015, but the ETF is higher by two-thirds of a percent today on volume that is already nearly double the daily average.
If the Aussie is poised to sustain a rally against the dollar and other major currencies, traders with a taste for risk can consider the ProShares Ultra Australian Dollar (NYSEArca: GDAY), which tracks the 200% daily performance of Australian dollar against the U.S. dollar. GLD’s five-year correlation to FXA is 0.392, slightly higher than the gold ETF’s five-year correlation to FXF, according to State Street data.
CurrencyShares Australian Dollar Trust
Tom Lydon’s clients own shares of GLD.