Three Reasons to Short Australia's Dollar

Three Reasons to Short Australia's Dollar

Assessment

Interactive Video

Business

University

Hard

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The video discusses reasons to short the Australian dollar, focusing on trade tensions between the US and China, declining iron ore prices, and diverging interest rates between Australia and the US. It also explores investment strategies suggested by industry players, such as shorting the Aussie in favor of the Japanese yen and US dollar.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one major reason the Australian dollar is negatively impacted by the US-China trade tensions?

Australia's reliance on US imports

China's role as Australia's largest trading partner

Australia's strong economic ties with Europe

The Australian government's fiscal policies

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are iron ore prices significant to the Australian economy?

Iron ore is Australia's largest import

Iron ore is Australia's largest export

Iron ore prices have no impact on the Australian economy

Iron ore is a minor export for Australia

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the Australian central bank responding to the sluggish economy?

By keeping interest rates on hold

By lowering interest rates

By raising interest rates

By increasing government spending

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What strategy is suggested by Morgan Stanley for traders regarding the Australian dollar?

Buy Australian government bonds

Go long on the Australian dollar

Short the Australian dollar in favor of the Japanese yen and US dollar

Invest in Australian real estate

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current sentiment of leverage funds towards the Australian dollar?

Bearish

Indifferent

Bullish

Neutral