article 3 months old

Take Profits On Aussie Dollar Trade, Says TD Waterhouse

Currencies | Jan 13 2009

By Rudi Filapek-Vandyck

It was only on Friday that TD Waterhouse recommended currency traders should go short the Aussie dollar. Reasons provided for the “short” trade was a sudden spike in investor appetite for more risky assets, such as commodities and commodities-related currencies, but one that was unlikely to last given the significant economic headwinds that were still ahead.

(See also our story “Go Short The Aussie Dollar, Says TD Waterhouse”, FYI, January 9, 2009).

Three days later, the Aussie has been to US$0.72 and back to US$0.6750, and TD Waterhouse believes the time is opportune for taking profit on the trade.

Says Joshua Williamson, Senior Strategist TD Securities: “Since the recommendation was made, the AUD has fallen substantially, weighed down by weaker commodity prices, falling equities and a renewed safe-haven bid for the USD.”

To share this story on social media platforms, click on the symbols below.

Click to view our Glossary of Financial Terms

Australian investors stay informed with FNArena – your trusted source for Australian financial news. We deliver expert analysis, daily updates on the ASX and commodity markets, and deep insights into companies on the ASX200 and ASX300, and beyond. Whether you're seeking a reliable financial newsletter or comprehensive finance news and detailed insights, FNArena offers unmatched coverage of the stock market news that matters. As a leading financial online newspaper, we help you stay ahead in the fast-moving world of Australian finance news.