-The AUD/USD was a great currency pair for the carry trade strategy when the Fed had QE2. Since the end of QE2 and the downgrade of the US by Standard & Poor’s the AUD/USD has remained volatile as it has a similar correlation to the SPX 500.
-During the month of September the AUD declined, October it recouped all of its losses, and November it approaches the lows again. This pair could be moved upward if a debt deal is struck by the super committee and if Europe can continue to buy time and fly under the radar.
-If equities start to rally towards the end of November we could possibly see a rally carried into December. Remember November is not over yet and the US markets are closed Thursday due to Thanksgiving.
