Daily Reckoning - Australian Edition - Oct 12, 2012
Goldman Sachs reckons the Australian dollar is in deep trouble. 'One of the best long term trades out there at the moment is long euro versus short Aussie,' said Thomas Stolper, chief currency strategist at the investment bank.
The foreign exchange market remains one of the few buoyant trading areas in this stagnant economic environment, thanks largely to the continuing strength of the Australian dollar. Traders in this region currently like the AUD/USD pair and the EUR/USD.
Australia: The Australian Dollar has opened trading around the 1.0200 level this morning as weakening fundamentals, a cooling in exports and an increasingly dovish Central bank has weighed on the currency.
The US S&P 500 Volatility Index (VIX) trades near multi-year lows, and current levels have coincided with important turnarounds in the S&P and the highly-correlated Australian Dollar. Indeed, current VIX levels of approximately 15% have most recently ...
Kazakhstan holds 3 percent of its $30.1 billion of foreign exchange reserves in Australian dollars, the oil-rich nation's central bank said, underscoring demand for the currency as countries diversify their assets.
You may recall that several weeks ago investment firm Goldman Sachs said buying the euro and short-selling the Aussie dollar was one of the best long-term trades out there. The Wall Street Journal even reported at the time that someone at Goldman Sachs ...