Wednesday, January 21, 2009

Consider the Aussie

The Australian dollar is trading about 10% over its 5 year low versus the dollar. It's had a serious drop over the last 12 months as many hedge funds have unwound their positions in the Yen carry trade (borrowing Yen at low interest rates to buy Aussies and invest those at high interest rates).

I hopped in this morning. I am hoping the kanagroos have gold in those pouches, as I dumped some of my AU to buy the AUDs. I was hoping to end with a more painful "g'day" style joke, but I just can't bring myself to do it. This is a family blog, after all.

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