Tuesday, October 26th, 2010 - Vantage FX and Enfinium
Weaker growth signals persisting from the USA means the AUD is on track to continue through parity. The strength in the AUD is mainly due to a weaker USD. This has also signaled a rise in the price GOLD and Crude Oil. Antony Goddard, director from Vantage FX believes that over the next 6 to 12 months we could see the Aussie dollar push to a 3 cent range from $1.02 to $1.05. This strength of the currency would be stimulated by further Australian rate hikes and continuing demand for commodities. Goddard's comments are inline with Goldman Sachs and Bill Evans, chief economist from Westpac.

If one was bullish the AUD against the USD, then given the recent pullback in the AUD a leveraged play might be to buy the AUD/USD pair via a margin FX account and write an AUD currency option just above parity. A more aggressive trader might look to leg in to the position by first riding the currency position up in value and then selling the call option. As currencies can be volatile, good risk premium can be found in currency options.

Vantage FX is an Australian registered company providing specialist foreign exchange (Forex) trading services to Australian and International clients. Through the Vantage FX MetaTrader 4 platform, clients have access to world leading trading software with competitive prices and low spreads, all backed with our quality service.

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Vantage FX and Enfinium


Vantage FX is a Corporate Authorised Representative of Enfinium Pty Ltd (AFSL No. 322081), who acts as a licensee and outsource provider to oversee our compliance with Australian Financial Services Law and the requirements of holding segregated client funds at approved banks. As a financial services provider, we are regulated by Australian Securities and Investments Commission (ASIC) under Australian law.
Joanna Thompson
P: +61 1300 945 517
W: www.vantagefx.com

Keywords

margin forex, trade margin fx, vantage fx, trade currency options, currency options, aud parity, aud/usd

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