Playing Gold From Down Under
Dragonfly Capital | Sep 18, 2014 08:04AM ET
Australia has long been known to currency traders as a country where the currency is highly tied to swings in commodities. But, over the last six months a position in the Aussie could be a straight proxy for just one commodity: Gold.
The chart above shows the Rydex CurrencyShares AUD Trust (NYSE:FXA) as a line with the SPDR Gold Trust (ARCA:GLD) as the gold area. The strong correlation is evident since the end of March. And the momentum indicators on the chart support the Aussie continuing lower. Does this mean that Gold will continue lower?
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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