“Thus, vagueness aside, I will bet on the “over” line, “way over” in fact. With no recession in 23 years, and with wages and prices of goods dramatically out of line with the rest of the world, and with one of the world’s biggest property bubbles, the upcoming recession in Australia will be a doozie,” according to Shedlock.

Assuming RBA is successful in weakening the Aussie further while skirting recession, there are options for investors looking to profit from upside in Australian equities and downside in the currency.

ETF issuers have yet to bring the ultra-hot currency hedging theme to a dedicated Australia ETF, but in lieu of such a fund, the Deutsche X-Trackers MSCI Asia Pacific ex Japan Hedged Equity ETF (NYSEArca: DBAP) is worth a look.

Among multi-country currency hedged ETFs, none can top DBAP’s 22.5% weight to Australian stocks. That makes Australia’s DBAP’s largest country weight. The ETF is up nearly 4% this year. [The Right Currency Hedged ETF for the Times]

CurrencyShares Australian Dollar Trust