FXA Australian Dollar Index Trade Idea to $75FXA (Australian Dollar Index) appears undervalued and due for a rise towards $75. A pair idea is AUDUSD buy.
Key stats
About Invesco CurrencyShares Australian Dollar Trust
Home page
Inception date
Jun 21, 2006
Structure
Grantor Trust
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Ordinary Income
Max ST capital gains rate
39.60%
Max LT capital gains rate
39.60%
Distributor
Invesco Distributors, Inc.
FXA offers direct exposure to the AUD by holding physical dollars in a deposit account at JPMorgan. The fund does a great job of providing exposure to the Aussie dollar and its corresponding interest rate through its simple structure. However, unlike a retail checking account in the US, the funds AUD deposits are uninsured. As a result, investors are exposed to the default risk of JPMorgan, the fund's depository bank. Tax efficiency is another concern, any distributions or sales of FXA shares are taxed at ordinary income rates, regardless of holding period. FXA is rebalanced quarterly.
Classification
Symbol
Geography
Australia
What's in the fund
Exposure type
Cash
Bonds, Cash & Other100.00%
Cash100.00%
Top 10 holdings
Australian dollar change of trend?Made a double bottom on the daily and shot up breaking the channel.
Rob Smith - smithintheblack - Quant Edge learning11/26/17 – Bias: Neutral. Outside bullish month and week up.
Momentum inside hammer in August.
Inside week 9/11/17. Tried to go higher in
September, long upper shadow. Rev Strat
Weekly Down Under 79.68. We will see what
December brings. 4 consecutive bearish months.
Has not made a lower low sin
Rob Smith - smithintheblack - Quant Edge learning11/26/17 – Outside bullish month and week up.
Momentum inside hammer in August.
Inside week 9/11/17. Tried to go higher in
September, long upper shadow. Rev Strat
Weekly Down Under 79.68. We will see what
December brings. 4 consecutive bearish months.
Has not made a lower low since 01/01/16 at
See all ideas
Summarizing what the indicators are suggesting.
Oscillators
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Oscillators
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Summary
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Moving Averages
Neutral
SellBuy
Strong sellStrong buy
Strong sellSellNeutralBuyStrong buy
Displays a symbol's price movements over previous years to identify recurring trends.