TalkFNStocks, Options and FOREX investments

I have had good experience so far with the Australian Dollar (AUD) FOREX trade where I had some quick gains on the AUD/NZD FOREX trade (Australian dollar against the New Zealand dollar) which got me 145 pips. Now it is time to make another FOREX move on the Australian dollar. This time I am going straight against the US Dollar (USD). So, this FOREX trade is buying the AUD and selling the USD (or going long on the AUD/USD FOREX pair.

Note that I am also holding the XDA FOREX call options that I bought earlier this month. I am down around 11% on these call options but I still have about a month to go.

There is a strong bullish undercurrent on the AUD over the last couple of months. The Reserve Bank of Australia (RBA) has actually raised interest rates twice recently; the Australian unemployment rate has gone down; and the fact that Australia feeds the bulk of the commodity market does not hurt its economy one bit (quite the opposite). There are various projections on the AUD doing well in the FOREX market in 2010.

So, I am going long on the AUD/USD FOREX trade and have got in at 0.9248. I am expecting it to go over 0.93 by tomorrow potentially giving me a over 50 pip gain.

This entry was posted on Tuesday, November 24th, 2009 at 9:51 pm and is filed under FOREX. You can follow any comments to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.