Interesting comments on cnn money 17/09 http://money.cnn.com/2010/09/17/markets/thebuzz/index.htm
Australia is a commodity-rich nation. So the surge in its currency is a reflection of the recent spike in commodity prices. But one commodity in particular is helping to boost the fortunes of Australia: copper.
Copper has many industrial uses. So copper prices, more so than the prices of more speculative commodities like gold and even oil, tend to rise and fall based on the tried-and-true economic laws of supply and demand.
Because of the metal's solid track record as a true barometer of fundamental trends, some market strategists refer to it as Dr. Copper. The joke, if you will, is that copper has a PhD in economics. (Does that mean gold just has a Bachelor's degree? I digress.)
So the increase in the Australian dollar could be a bullish sign. Boris Schlossberg, director of currency research at GFT Forex in New York, noted that the Aussie has been benefiting from more favorable news about China's economy.
"The move in the Australian dollar is a play on the global recovery, especially Chinese demand, picking up pace," Schlossberg said. "If you are a bull on the stock markets worldwide, the Aussie is your bet."
CDU Price at posting:
$2.07 Sentiment: Hold Disclosure: Held
