Trading Currencies In Australia
Earn Daily Interest While in this Currency Investment
As I go through my day as a currency trader/investor, I scan the long term charts to see what may be emerging. Today, I ran across a great way to earn some interest EVERY DAY and be in an investment that is headed higher. Not many investments in the world can boast that right now.
However, the AUD/CAD currency pair (Australia vs. Canada) can boast just that.
The downtrend (red line) has been broken. A spike low was put in place back in October and the price hasn’t looked back ever since. How many investments can say that? Most stocks, mutual funds and ETFs sure can’t right now!
Yet in stocks, at best you normally earn QUARTERLY interest but in this currency pair, you earn it DAILY each day at 5pm EST.
What are the fundamental forces at work that have produced this uptrend?
Here’s why I believe the uptrend will continue overall. There are several factors but I will hone in on two very important ones right now: Interest rates and Quantitative Easing
Why interest rates? Australia’s currency yields 3% a year right now while Canada just cut theirs today to 0.25%. Therefore, that 2.75% difference can be earned on a daily basis. That’s enticing to investors and will encourage them to buy the higher yielding currency and to sell the lower yielding one.
Think of it this way. If you had a savings account at your bank that earned 0.25% and across town there was a bank offering 3%, which bank would you be inclined to stick your savings into? Of course, the 3% one. Currency investors are no different.
So interest rates will favor the Aussie dollar over the Loonie (nick name for the Canadian dollar).
What the heck is Quantitative Easing? Even though this phrase sounds complicated, it’s actually very simple. It’s simply when a central bank prints a ton of money. In this case 125 billion Canadaian dollars (thus far).
The concept is simple. Anytime you make more of something, it’s value gets diminished because it’s so prevalent. However, the more rare something is, the more it tends to rise in value because it’s so scarce.
So when the Canadian central bank prints more dollars (aye!), it dilutes the the value of that money. This now bringsa about two very serious road blocks for the Canadian dollar. Interest rates don’t give you an incentive to hold Canadian dollars (CAD) when there are others out there that literally pay 12 times higher (3% vs. 0.25%)! Also, Australia has resisted emploring Quantitative Easing while Canada is embracing it.
Therefore, when one country purposefully “waters down” their currency and another does not, it only makes sense that the latter should rise against the former.
Now there are other economic factors too that favor Australia over Canada...however, I wanted to point out two that were so important that they alone could help to keep this uptrend intact.
Sean Hyman
Contributing Writer
MyWeakth
About the Author
myWealth.com provides affordable, online personal finance courses that enable everyone to effectively manage their money by making sound financial decisions. Making sound decisions is a prerequisite to achieving your financial goals and becoming financially secure. myWealth.com offers numerous courses that cover investing, managing ones personal finances and currency trading.
myWealth.com's team of instructors, led by Sean Hyman and Bob O'Brien, pride themselves in thoroughly answering questions and patiently guiding each and every student through the course. Our instructors have years of experience trading various financial markets. They also have years of experience providing financial planning advice to individuals like you.
Forex News - Carry Trades with Australia, Canada and NZ
Day Trading Books
 |
A Beginner's Guide to Day Trading Online (2nd edition) List Price: $16.95 Sale Price: $7.49 Used From: $6.50 Average Rating:   |
|
Day trading is highly profitable--and highly tumultuous. Moreover, the financial markets have changed considerably in recent years. Expert author Toni Turner gives you the latest information on mastering the markets, including: Decimalization of stock prices New trading products such as E-minis and Exchange Traded Funds (ETFs) Precision entries and exits The new breed of trader Written in an accessible, step-by-step manner, A Beginner's Guide to Day Trading Online, 2nd Edition shows how to day trade stocks in today's market. |
 |
Day Trading For Dummies List Price: $24.99 Sale Price: $13.49 Used From: $6.95 Average Rating:  |
|
Day trading is undoubtedly the most exciting way to make money from home. It's also the riskiest. Before you begin, you need three things: patience, nerves of steel, and a well-thumbed copy of Day Trading For Dummies—the low-risk way to find out whether day trading is for you... |
 |
The Complete Guide to Day Trading: A Practical Manual From a Professional Day Trading Coach List Price: $15.95 Sale Price: $11.00 Used From: $19.46 Average Rating:  |
|
Learn the Art of Day Trading With a Practical Hands-On ApproachDo you want to be a day trader?Every day, millions of dollars change hands in the markets, presenting the perfect opportunity for people just like you to make significant money and profits through the art of day trading... |
 |
The Truth About Day Trading Stocks: A Cautionary Tale About Hard Challenges and What It Takes To Succeed (Wiley Trading) List Price: $60.00 Sale Price: $32.32 Used From: $24.95 Average Rating: |
|
A realistic guide to day trading today’s stock market "Josh does an outstanding job of capturing all his trading experience into an invaluable memoir detailing specific rules for both the inexperienced and experienced trader... |
 |
Day Trading the Currency Market: Technical and Fundamental Strategies To Profit from Market Swings (Wiley Trading) List Price: $70.00 Sale Price: $77.99 Used From: $24.79 Average Rating: |
|
Written by Kathy Lien—chief strategist for the number one online currency broker in the world—Day Trading the Currency Market reveals a variety of technical and fundamental profit-making strategies for trading the currency market, and provides a detailed look at how this market actually works... |
 |
Day Trading Options: Profiting from Price Distortions in Very Brief Time Frames List Price: $34.99 Sale Price: $18.68 Used From: $19.95 Average Rating: |
|
“As a veteran reader of some 500+ trading and investing books and having interviewed hundreds of authors, I never take the approach that you can believe what you read or hear about how to make money in the market, so I try their theory, system, or ideas... |
 |
Winning the Day Trading Game: Lessons and Techniques from a Lifetime of Trading (Wiley Trading) List Price: $65.00 Sale Price: $34.12 Used From: $27.12 Average Rating: |
|
Take a proven approach to short-term trading. Winning the Day Trading Game offers an insider's view of the trading life and provides proven strategies for profitable trading. Professional trader Tom Busby explains how the strategies that made him so much money early on in his career ultimately failed during the 1987 stock market crash and then reveals how he reinvented himself as a high-percentage day trader... |
 |
The Electronic Day Trader: Successful Strategies for On-line Trading List Price: $18.95 Sale Price: $1.95 Used From: $0.01 Average Rating: |
|
Most of us have been conditioned to approach the stock market as a long-term proposition. Many of the bestselling investment books coach readers to seek value in the best companies for long periods of time... |
 |
Getting Started in Real Estate Day Trading: Proven Techniques for Buying and Selling Houses The Same Day Using The Internet! List Price: $29.95 Sale Price: $16.51 Used From: $15.97 Average Rating: |
|
Real estate day trading is using the Internet to buy and sell houses without leaving home. In many cases, the investor closes on a house and resells it the same day. Readers will learn the author's system for how to buy and sell 5-10 houses a month in today's market, using the Internet, phone, fax, and email to analyze, research, and find the properties, buyers, and others needed for the transaction... |
 |
Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves (Wiley Trading) List Price: $70.00 Sale Price: $38.19 Used From: $35.97 Average Rating: |
|
Discover a variety of technical and fundamental profit-making strategies for trading the currency market with the Second Edition of Day Trading and Swing Trading the Currency Market. In this book, Kathy Lien–Director of Currency Research for one of the most popular Forex providers in the world–describes everything from time-tested technical and fundamental strategies you can use to compete with bank traders to a host of more fundamentally-oriented strategies involving intermarket relationships, interest rate differentials, option volatility, news events, and central bank intervention. |
[...] Trading Currencies In Australia – Find Day Trading [...]