A factor that could lead to significant divergence between AUDUSD and CADUSD is the
interest rate differential between Australia and Canada.
The current overnight CAD benchmark rate target set by the Bank of Canada is 1.0%.
Source: http://www.bankofcanada.ca/monetary-policy-introduction/key-interest-rate/
The yield on a 3-year Canadian government bond is approximately 1.2%.
Source: http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/
The current cash AUD benchmark rate set by the Reserve Bank of Australia is 4.25%.
Source: http://www.rba.gov.au/
The yield on a 3-year Australian government bond is approximately 3.2%.
Source:http://www.bloomberg.com/markets/rates-bonds/government-bonds/australia/
The CADAUD exchange rate is currently 1CAD = 0.9526AUD.
Which bond do you think looks more attractive to a fixed-income fund manager? The answer should be rather obvious, with implications on the bond/debt market.
boston said:
phillis said:
ooooo sweet. i wish it was a little harder to go broke trading forex!
Don't worry, many have thought the same, and still managed to go broke trading forex.
Making a profit on retail forex is do-able; the short version is truly *very* few succeed.
Anyone can lose money faster than burning it by leveraging 100:1 on an undersized bankroll.
Those who actually have adequate bankroll will find a better risk-reward ratio in other opportunities.
In other words, if you rely on the service provider to 'train' you, you have almost no business 'trading' FX.
