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CurrencyShares Australian Dollar Trust ETF (FXA)

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  • Jun. 13, 2013, 7:03 AM
    "One of the biggest economic bubbles in history is now about to go into the Minsky masher," writes SocGen professional bear Al Edwards of Australia (EWA, FXA), calling it a "leveraged time bomb waiting to blow." A slowing China and with it lower commodity demand are well known, but the domestic economy is just another in long (global) line of credit-fueled economic bubbles. Previous: His old partner Dylan Grice on Oz one year ago.
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  • Jun. 11, 2013, 7:47 AM
    The Australian dollar continues its sharp descent, hitting a near 3-year low with the most recent excuse for selling last night's weak home-loan approvals report. Short-term rate futures markets have priced in another 50 bps in rate cuts over the next year from an already record-low 2.75%. FXA -1.1% premarket and the ausse is buying  $0.9349. The decline may he helping Aussie shares (EWA) which rose 0.4% in the face of a big worldwide decline.
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  • Jun. 6, 2013, 12:28 PM
    Unusual given past patterns, the dollar (UUP -1.7%) is being unloaded across the board and in size along with stocks selling off. The euro (FXE +1.5%), cable (FXB +1.8%), the yen (FXY +3.1%), the aussie (FXA +1.1%), and the loonie (FXC +1.3%) are all sharply higher vs. the greenback. The Dow's now off 86 points.
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  • Jun. 6, 2013, 8:14 AM
    Stand in line if you want to short the aussie (FXA), says BlackRock managing director Mike Trudel. If there are any prominent hedge funds long the currency, he hasn't spoken to them. The bear case on the aussie - slowing China, slowing domestic economy, RBA in rate cut mode, falling commodity prices - is well-known, perhaps too well-known. The aussie is off from about $1.06 two months ago to $0.9500 this morning.
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  • Jun. 5, 2013, 9:32 PM
    After opening down about 1% following the big decline in the U.S., the Nikkei quickly erases the loss and turns 1.1% higher in mid-morning trade. There's no bounce in Sydney (EWA) which sits at the day's low, off 1%. The aussie (FXA) falls 0.5% to its lowest level in more than a year, buying $0.9490. S&P 500 futures +0.25%.
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  • Jun. 5, 2013, 2:51 AM
    Australian Q1 GDP flat at 0.6% on quarter vs consensus of +0.8%. On year, GDP drops to 2.5% from 3.1% and misses expectations of 2.7%. With exports helping to drive growth, one economist says the figures highlight the weakness of domestic demand. Another says the reading shows that Australia's transition to growth led by non-resource industries as the mining boom peaks is still "fairly hesitant and slow," and would support another rate cut. The Aussie (FXA) is -0.2% vs the USD. (PR)
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  • Jun. 4, 2013, 1:51 AM
    As widely expected, the Reserve Bank of Australia has held its key overnight cash-rate target unchanged at a record low of 2.75%, but indicated that it could lower rates further after surprising markets in May with a cut. "The inflation outlook, as currently assessed, may provide some scope for further easing, should that be required to support demand," the RBA said. The Aussie (FXA) is -0.4% vs the U.S. dollar. (PR)
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  • Jun. 3, 2013, 1:51 PM
    CurrencyShares Australian Dollar Trust (FXA) announces monthly distribution of $0.1691. For shareholders of record June 05. Payable June 10. Ex-div date June 03.
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  • Jun. 2, 2013, 9:56 PM
    China's HSBC PMI for May falls a bit more than the "flash" read tipped off 10 days ago, coming in at 49.2 from 50.4 (flash came in at 49.6). The downward revision "suggests a marginal weakening of activities toward the end of May, thanks to deteriorating domestic demand conditions," says HSBC. "Beijing needs to boost domestic demand." Reaction is muted: Shanghai (FXI, CAF) +0.2% and Hong Kong (EWH) +0.6% in early trade. The aussie (FXA) knee-jerks down a few pips, but is +0.4% on the session at $0.9618.
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  • May. 29, 2013, 8:43 AM
    The RBA may need to cut its record-low benchmark interest rate (now at 2.75%) another two times, says Pimco, noting the Australian dollar's recent decline to an 18-month low hardly puts the unit in weak territory. Markets are currently pricing in just one cut - not enough says Pimco unless the aussie falls a lot further than it already has. After another sharp decline overnight, the aussie (FXA) has returned back to around unchanged.
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  • May. 29, 2013, 1:10 AM
     The Australian dollar (FXA) fell to a 19-month low in Wednesday morning trading vs. the U.S. dollar, to 95.46 U.S. cents. This is only partly due to a stronger U.S. dollar; concerns about slowing growth in China are ongoing, and anticipation of weak Australian business investment numbers, due Thursday, could drive the Aussie even lower.
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  • May. 24, 2013, 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.
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  • May. 22, 2013, 10:42 AM
    Bernanke: 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
  • May. 17, 2013, 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%).
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  • May. 17, 2013, 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.
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  • May. 14, 2013, 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
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FXA Description
CurrencyShares Australian Dollar Trust is designed to track the price of the Australian Dollar net of Trust expenses, which are expected to be paid from interest earned on the deposited Australian Dollars.
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Country: Australia
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