Friday, May 8, 2009

Currency: Canadian Australian Dollars And US Bonds

Y'day during the 30 year bond auction we could clearly see there is more pressure on the longer term bonds as no one willing to get into safe bet, And at the same time they don't like to invest into the US dollars any more.



In the below chart it clearly gives the Canadian to US dollar ratio, If you see back in sept-Oct during the crisis, dollar and equivalent assest got appreciated vastly due to bet on American economy, And now advanced along with soverign countries are backing off bit if you the bond auction. Here it what i noticed that money is going out of the US to Canadian dollars, is that interesting........



Same is with Aussie dollar, money is getting out the US dollar and piling back into Australia.What does this tells us that US dollar is not the safe place to be when compared to the other less risky debt free economies.


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