Monday, December 7, 2009

Investing in the Australian Dollar

This blog is created to give the reader an insight into investing in the Australian dollar. As I'am a firm believer of using technical indicators. A 5 year and 10 year chart has been posted below.



5yr AUD vs SGD

Looking the 5 Yr chart, the highest and lowest value is 1.3337 (Oct 29 2007) & 0.9345 (Oct 20 2008) respectively. The red line indicates the 100 day moving average.


10yr AUD vs SGD

We shall now take a look at the 10 yr Chart of the AUD vs SGD. The highest point still remains unchanged at 1.3337 (Oct 29 2007). However the lowest point is now 0.847(Sept 17 2001).

It should now be evident to the reader that the lows of the Australian dollar is reached during an economic downturn. The last two major ones being the bursting of the DOT.COM bubble, terrorist attacks of Sept 11 2001 & subprime mortgage crisis leading to the chaper 11 filing of bankruptcy of lehman brothers.

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