Playing Gold From Down Under

• Posted by Greg Harmon
• on September 18th, 2014

Australia has long been known to currency traders as a country where the currency is highly tied to swings in commodities. But over the last six months a position in the Aussie Dollar could be a straight proxy for just one commodity: Gold.

The chart above shows the Australian Dollar ETF ($FXA) as a line with the Gold ETF ($GLD) as the gold area. The strong correlation is evident since the end of March. And the momentum indicators on the chart support the Aussie continuing lower. Does this mean that Gold will continue lower?

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