AUD 01 (May 08 - Feb 12)

[persistentone]

How do you hold the Australian dollar?

Here in US we have an ETF FXA. I guess some brokers here will let you hold the currency directly.

[winston]

Just a simple Foreign Currency Fixed Deposit.

[kennynah]

RBA holds rate at 3%

[Musicwhiz]

I note the AUD:SGD is now at 1.208.

Am tracking this as one of my companies has major operations in Australia, thus depends on the strength of the Aussie Dollar. I recall the collapse of the AUD against SGD last year to about 0.92.

[kennynah]

all this strength on the back of a commodity rebound that happened..... some more today no cut rate...signaling auz gahmen thinks their economy is ok... no need add salt and vinegar

[winston]

Still sitting on my AUD ...

WHY YOU SHOULD INVEST IN AUSTRALIA by Brian Hunt

Today's chart shows that once again, the ABCs are the place to be these days.

Years ago, Wall Street began using the acronym "BRICs" when discussing investments in the developing countries of Brazil, Russia, India, and China. We say, "Go ahead and watch the BRICs... but also watch the ABCs."

The ABCs are Australia, Brazil, and Canada. These are the three best countries for long-term investment in commodities like oil, uranium, copper, iron ore, and sugar. Each country has managed its finances better than the U.S. Each is loaded with the raw materials growing giants like India and China need.

Take Australia. The Land of Oz is a major producer of iron ore, coal, wheat, gold, uranium, and natural gas. It has excellent rail and port infrastructure. It sits on the doorstep of Japan and China. And while the U.S. dollar has spent its time crashing, the Aussie dollar has spent its time soaring. It's as close to a gold and commodity-backed paper currency as it gets.

Source: Daily Wealth

[winston]

A BET ON THIS COUNTRY IS A BET ON CHINA

Our next "world currency tour" stop is one of the most dangerous places on Earth… Australia.

In his fantastic book In a Sunburned Country, Bill Bryson highlights how the land of "Oz" is packed with species that are the deadliest of their kind in the world. If the critters don't get you, the heat or the ocean will. (The country once lost a prime minister to the tides.)

And like its "ABC" cousin Canada, Australia is packed with huge stores of natural resources. It has enormous stores of natural gas, uranium, iron ore, and gold. It's also on the doorstep of China and Japan, which consume incredible amounts of the stuff. A bet on Australia these days is a bet on China's raw material consumption.

Also like Canada, Australian banks have behaved "less dumb" than their counterparts in Iceland, Spain, the U.S., and the U.K. over the past decade. That restraint and rising commodity prices have produced the uptrend you see below.

Source: Daily Wealth

[kennynah]

general discussion...

would you FCFD in AUD now or would you begin to unwind your AUD assets?

[millionairemind]

general discussion...

would you FCFD in AUD now or would you begin to unwind your AUD assets?

If China's growth has peaked for this year and next and with no new stimulus money, the growth rate will slow considerably.

With European mess on-going, I would be surprised to see Australia continue to grow strongly since it's growth is commodity driven.

Just my tiny 2 (singapore) cts..

[kennynah]

thanks MM...so, you would not be inclined to hold AUD currency going forward? again, thanks for your thoughts..