Australia was the first rich country to emerge from the great recession. The Australian government just raised the central banks benchmark interest rate to 4% to head off inflation. Remember, Australia is in Asia- the region of growth. The Aussie dollar has ralled from 63 cents to 91 cents against the US dollar as well. Aussie dollar cash positions also pay a significantly higher interest rate too!  3.5%Compare that to the 20 basis points the US Dollar is paying.

Again, CR Investment advisors does not recommend that our client’s speculate in currency trading.  Short term currency movements are unpredictable.  We do recommend that they diversify their cash positions in various hard currencies.  The Australian dollar is one of them.