Monday, November 16, 2009

Australian Dollar as the new safe haven currency

Well, benefits with the Australian dollar can just go on and on and here is just some of they key ones:

1) Resource backed currency

2) Unlike the Loonies/Canadian Dollar, it's not "stuck" with the USD due to the vast bilateral trade between the two neighbors

3) Gold price making records day after day

4) Interest rate among the highest and rising with the AUD
http://www.bloomberg.com/apps/news?pid=20601087&sid=aNQej16azBKQ&pos=4

5) Chinese recovery and immense need for global stimulatory infrastructure building

6) Like I said, in the "Yen Stability" piece, Yen is going be stable with USD from now on, RMB is not freely traded and they are all bound to USD due to the vast bilateral trading relationships anyways.

7) Good place to be in, all in all, to hedge against another potential leg down if you are in the U.S.:
http://www.businessinsider.com/meredith-whitney-i-havent-been-this-bearish-in-a-year-2009
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