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Technically trade the best “fundamental” currencies. Which one’s on top?
By Sean Hyman | June 10, 2009
Australia…why? It has the highest interest rate of any major industrialized nation (3%…next highest, New Zealand @ 2.5%). It has the next to highest inflation rate which will help ensure high rates that go higher over time (2.5% year over year (New Zealand is on top, with 3%)). Australia really stands out on this next one…they are the ONLY major industrialized nation to have a positivie year over year GDP (0.8%). All others are negative right now. And they still have one of the lower unemployment rates out there (5.4%).So put all of this together and this gives the Aussie dollar the best overall fundamentals followed by the New Zealand dollar, next. Therefore, you may want to technically trade AUD/USD, AUD/JPY and secondarily NZD/USD and NZD/JPY as your “focus currencies” to trade…no matter what time frame you trade upon.(As an added note, the Aussie consumer sentiment jumped to a +12.7% vs. a -4.3% last time. This is one of the highest readings in a long time.)Also…China just had an acquisition deal go bad that would have netted them a ton of iron ore that they badly need for their expansion. Since that fell through, they will greatly step up their purchases from Australia, which again helps the Aussie dollar, especially vs. the U.S. dollar (buying AUD/USD, in other words).Get a FREE, REAL TIME demo account to trade, here: http://www.fxedu.com/practice-forex-account
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