Related: Dollar ETF Dithers
Looking ahead, most economists anticipate a second cut before the end of the year, with the June quarter inflation figure, which comes out in August, providing further guidance on the RBA’s path.
“The Australian construction PMI (Purchasing Managers’ Index) declined to 46.7 in May 2016 against 50.8 in April. However, the decline didn’t have any effect on Market indexes, which continued to gain last Wednesday. A rise in crude oil prices (USO) also strengthened commodity currencies such as the Australian dollar, the New Zealand dollar, and the Canadian dollar,” according to Market Realist.
There are other Australia ETFs to consider as well. The SPDR MSCI Australia Quality Mix ETF (NYSEArca: QAUS) emphasizes the quality factor, which captures excess returns to stocks that are characterized by low debt, stable earnings growth and other ‘quality’ metrics. Lastly, the First Trust Australia AlphaDEX Fund (NYSEArca: FAUS) selects Australian companies based on growth factors including 3-, 6- and 12-month price appreciation, sales to price and one year sales growth, along with value factors including book value to price, cash flow to price and return on assets.
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iShares MSCI Australia ETF
