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.
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
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.