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Friday, May 24, 2:41 PM
Flush with profits from shorting the yen, hedge funds turn their attention to the aussie (FXA) in a bet the end of the commodities boom will drive it lower. It's not exactly a new idea and a lot of funds have gotten smoked from having to pay big carry (Oz short rates have been in the 4% area vs. near 0% here) while the currency failed to move, but the bet's paid off in the last 6 weeks as the aussie has fallen 10 handles. It's off another 1% today.
1 Comment[Global & FX]
Wednesday, May 22, 10:42 AMBernanke: Stocks continue with solid gains as the chairman suggests the Fed may never sell the massive assets it's accumulated, instead just letting them roll down. Most interesting are Treasury prices (TLT -1.1%) rolling over - the 10-year yield sunk to 1.89% as Bernanke's soft comments hit the tape, but has reversed to now threaten 2%. Gold (GLD +0.6%) has given up much of its knee-jerk gains, and the dollar (UUP +0.3%) is having none of it, higher across the board, particularly vs. the aussie (FXA -1.1%), yen (FXY -1%), and loonie (FXC -0.6%).
5 Comments
Friday, May 17, 9:38 AM
Did the Fed tighten while we were getting a cup of coffee? The greenback is soaring against all other currencies, with the dollar bull ETF (UUP) gaining 0.6% - an unusually large move for that vehicle. Strength against the yen (FXY -0.3%) and the aussie (FXA -0.9%) are givens of late, but the greenback is up about 1% vs. both the loonie (FXC) and the swissie (FXF), and about 0.6% vs. the euro (FXE) and cable (FXB). Getting hit are Treasurys (TLT -0.5%), the dollar bear ETF (UDN -0.6%) and of course, gold (GLD -0.7%).
5 Comments[Global & FX]
Friday, May 17, 7:26 AM
The fast slide in the aussie catches even the bearish Goldman currency team off-guard, and it's forced to revise lower its 12-month forecast for the currency - now $0.90 vs. $0.98 previously. The reasons are well-known to anyone paying attention: A deteriorating Australian economy and lower commodity prices. FXA -0.4% premarket and the aussie is buying $0.9755.
Comment![Global & FX]
Tuesday, May 14, 2:50 PM
As the aussie (FXA -0.7%) continues its one-way slide lower, Marc Chandler updates his thoughts on what's become the pair trade du jour - long Mexican peso/short aussie. What's not to like - there's positive carry, commodities are falling in price, and inflation in China has made it a more expensive place to manufacture than Mexico. A lot have been waiting for the aussie to crack for a long time, says Chandler, and now it may have. He's planning on lowering his year-end target of $0.9700.
1 Comment[Global & FX]
Monday, May 13, 4:41 PM
Australia could see a recession in the next 18-24 months should a sharp fall in mining capex materialize, says Morgan Stanley. Other economists - including the RBA - hold out hope the retail sector and housing market will fill the void left by mining. The aussie (FXA) is off 7 big figures in a month as fx traders place their bets with the Morgan view. EWA is flat over the same period as the aussie's fall wipes out equity gains.
Comment![Global & FX]
Friday, May 10, 7:41 AM
The Australian dollar (FXA) sinks below parity with the greenback for the first time since last June, a victim of a slowdown in the Aussie economy and weak commodity prices (the two are surely intertwined). Aussie stocks are rising along with the rest of the world, but the Australian Index Fund ETF (EWA) - unhedged against the currency - is lagging.
2 Comments[Global & FX, On the Move]
Thursday, May 9, 3:06 PM
The dollar (UUP +1%) is soaring across the board (not just against the yen, where it's now spiked through ¥100 to ¥100.56). The greenback is threatening parity vs. the aussie (FXA -1.1%) for the first time since last summer, and the euro (FXE -1.1%), swissie (FXF -1.4%), loonie (FXC -0.5%), and pound (FXB -0.6%) are seeing sizable declines as well. Commodities? Red. Gold (GLD -1.1%), Silver (SLV -1.2%), Oil (USO -0.6%), Copper (JJC -0.8%).
5 Comments[Global & FX, Commodities, On the Move]
Thursday, May 9, 4:52 AM
Headline numbers obscure rising unemployment in resource-rich Western Australia, where the mining industry (which accounts for 20% of the country's GDP) is suffering from weaker economic growth in China and a stubbornly high aussie (FXA). The jobless rate in Western Australia rises to 5.25% in April from 4.8% in March, hitting its highest level since 2010 and jumping more than a full percentage point YTD. Meanwhile, the headline unemployment figure prints at 5.5% for April, down from 5.6% in March. Stocks in Sydney (EWA) creep slightly lower.
Comment![Global & FX]
Wednesday, May 8, 2:52 PM
The recent selloff in commodities (DBC) is not a correction, says Stan Druckenmiller, now on stage at Ira Sohn, but instead the end of the supercycle. Avoid commodity markets - Brazil (EWZ, BRF, BRL), South Africa (EZA, SZR), Canada (EWC, FXC). "Frankly, I'd short the aussie (FXA)." His largest equity holding? "I can't imagine a better position than Google (GOOG)" - selling for 16x earnings and no exposure to China.
4 Comments[Quick Ideas]
Tuesday, May 7, 5:11 AM
The Reserve Bank of Australia cuts rates for the seventh time in 18 months, taking the benchmark cash-rate down 25 basis points to a record low 2.75%, surprising some forecasters who expected the rate to remain unchanged. At 2.5%, inflation in Australia is within the central bank's target range and the strong aussie has weighed on mining companies who say it undermines their export competitiveness. The aussie (FXA) fell by more than half a cent against the dollar following the announcement.
1 Comment[Global & FX]
Tuesday, May 7, 4:37 AM
In Japan, stocks (EWJ) come off a long weekend well-rested and promptly rally to near five-year highs as the Nikkei surges 3.55% on the back of Friday's strong U.S. jobs data. Meanwhile, Australia's central bank cut rates by 25 basis points, sending the aussie (FXA) down 0.6% to two month lows against the dollar.
5 Comments
Monday, May 6, 7:53 AM
Despite the big commodity rally Friday, the aussie (FXA) fell in early Sunday trade and hasn't gotten up, perhaps aided by rumors George Soros has launched a short. "Someone has picked a mark around $1.0270 and seems to be betting on a rate cut," says one trader. Among all major currencies, the aussie is notably weaker vs. the greenback, -0.7% at $1.0248.
Comment![Global & FX, On the Move]
Wednesday, May 1, 2:55 PMCurrencyShares Australian Dollar Trust (FXA)announces monthly distribution of $0.1815. For shareholders of record May 03. Payable May 08. Ex-div date May 01.
Comment![Dividends]
Monday, April 29, 7:31 AM
Precious metals continue their comeback tour, with the dollar (UUP) being lower across the board as good an excuse as any for buying this morning. GLD +1.1%, SLV +1.5% premarket. The greenback is particularly weak vs. the aussie (FXA), +0.6%.
Comment![Commodities, On the Move]
Whitehawk: I think this is a rangebound market. What do you think?
Apr 18, 12:43 AM
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neobliviscar Picked up 2000 EEP to join the other guys here on SA. Sold Oct 106 calls FXA as part of paired trade long Swiss Franc vs syth short Aussie
9/7/12
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neobliviscar: I told MJ in another thread. I'd rather own a little lower, but my metrics are usually overly conservative by up to 5%. Definite buy $27.5
9/7/12
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neobliviscar: They're good on the div. High insider ownership. Large buildout PPE that makes sense. Debt is intelligent. Many +, & two (-) I can see.