Aussie Dollar Pops Higher After Jobs Data

The AUD/USD traded higher after yesterday’s domestic employment numbers beat expectations.

With headline jobs growth reported at 37.4k (versus 4.5K consensus) the AUD/USD pushed against the resistance level at .7450.

We don’t expect these data to move the RBA from their easing bias and, if benchmark overnight rates are going to move, the likely direction will be lower, not higher.

Investors who want to profit from a falling AUD/USD can buy the BetaShare ETF with the symbol: YANK.

YANK is an inverse EFT, which means that the unit price trades higher as the AUD/USD moves lower. YANK is also weighted, so that a 1% fall in the currency translates to a 2.5% gain in the unit price.

When the AUD/USD traded down to .7330 last week, the unit price of YANK was $15.54. We estimate that if the AUD/USD trades back to the January low of .7150, the price of YANK will be $16.50, or an approximate 10% gain from current levels.








Cyber Security ETF: HACK

With a widespread ransomware attack hitting thousands of computer systems over the weekend, we expect increased interest in the cyber security Exchange Traded Fund with the symbol: HACK.

HACK is made up of the leading companies in the global cyber security sector. These stocks include Symantec, Check Point and Cisco Systems.

This ETF started trading in September of last year and offers investors exposure to a diversified portfolio of the world’s largest cyber security companies in a single transaction.

BetaShare ETF: HACK


Geopolitics Give Gold A Lift

Between increased hostilities in Syria, and a US Navy carrier group off the coast of Korea, geopolitical risk lifted Gold over $20.00 in overnight trade.

After trading down to $1195.00 on March 15th, the yellow metal has moved $80.00 higher and is now trading near $1275.00.

With momentum indicators approaching over bought levels, we see scope for a pullback to the $1265.00. However, over the next few weeks, a move back to the November 2nd high of $1310.00 looks like a reasonable target.

Over the last few weeks, we have been buying both shares and call options on Newcrest Mining and the GDX Gold Miners ETF.

Chart Newcrest

ETF Update: Buy The YANK

The USD Index had its strongest week in over two months as better-than-expected GDP numbers, combined with hawkish comments from FED officials, lifted the Greenback against all the major currency pairs.

The bulk of the gains were against the EURO and YEN, with the AUD/USD finishing the week pretty much unchanged.

We don’t expect this to last. With the RBA overnight interest rate policy firmly on hold, the divergence of interest rate policy trajectory between the USA and Australia will push the AUD/USD lower.

Technically, the AUD/USD closed the week below the 30-day moving average with the RSI momentum indicators pointing lower. We see the first key support level at .7580 and have a medium-term target near the January low of .7160.

Investors who want to profit from the a lower AUD/USD can look to buy the BetaShare YANK ETF. YANK is an inverse ETF with a 2.5% weighting. This means that the share price of YANK will increase by 2.5% for every 1% fall in the AUD/USD.

With the YANK currently priced around $14.20, we estimate the share price to rise to $16.40 when the AUD/USD reaches .7160.

Call in for more information about YANK and the other ASX listed ETFs


Chart – YANK ETF