Friday, October 12, 2007

Hello dollar!

This is a chart of the $Aus/$US overlayed against the Australian SPI futures contract, a sort of Down Under S&P500 contract. The SPI is lagged half a year to more clearly point out the big picture relationship. The timeframe goes from present back to the start of 1983, almost 25 years (it's all the data Guambat has).



This chart does not suggest any trading tips, but does, perhaps, provide tips to a long term investor, as it seems to paint a generally inverse relationship between the value of the SPI and the value of the AUD/USD. Until recently, however, when both SPI and AUD/USD have been on a tear.



Perhaps it's different this time.

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