How quickly things can change. Just a few months ago, CAD 100 would get you AUD 115. The going rate right now is CAD 100 = AUD 99.9.
I don't know if this is a long term trend or just a temporary insanity of the markets. There has been a lot of temporary insanity happening in the markets that it makes me afraid that the insanity might be long term.
The main reason for the appreciation of the Aussie dollar has been the fact that you can get 6.5% interest on your savings account, while in Canada and the US all you can hope for is 1-2%. As a lot of the world's investors have their assets sitting in cash as the markets are too volatile, they are moving their cash to Australia to earn a decent return for their cash. As a lot of money moves to Australia, this causes the Australian dollar to get stronger with respect to other currencies.
The trend will stop at certain point, and probably reverse somewhat. The question is when and how much!
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