In the last few weeks, the Australian Dollar, /6A, has declined 3.6 percent. Similarly, some emerging market currencies like the rupiah and rupee are also selling off.
With this information in mind, Pete Mulmat takes a look at the Australian Dollar, emerging markets, and Gold.
Based on current price behavior, correlation, and implied volatility, Pete constructs a pairs trade that incorporates the Chinese ETF, FXI, and the Aussie Dollar.
Tune in for his logic, setup, and management expectations.