The Australian Dollar

Jack Crooks takes a closer look at the Australian dollar. Mr. Crooks examines the Australian economy and determines why there could be a possible boost in their dollar.

Australia is a prime example of a major industrialized economy that is not suffering from financial-led turmoil. And that means the Australian dollar stands to benefit.

Here are just two reasons the Australian dollar will could benefit:

1. Demand for commodities: Australia's economy is driven by natural resources. Thanks to steady demand from China and other emerging Asian markets, Australia is rolling along like a snowball down a hill. In January, Australian unemployment fell to its lowest level since 1974. And the addition of 26,800 new jobs marked the 15th consecutive month of gains. And remember that Australia's job market strength comes as the employment situation in the U.S. is softening.

2. Relatively high interest rates: Currency trading can be largely determined by the difference between countries' interest rates. Generally speaking, a currency that throws off a yield of 6% is a far more attractive investment than a currency yielding only 0.5%. The Australian dollar is second only to New Zealand (8.25%) in terms of yield. But what's even more appealing is the direction rates are expected to take.

"Most major central banks around the world are in one of two positions: They have already cut rates and are expected to cut rates further, or they are expected to begin cutting rates. The Reserve Bank of Australia happens to be pushing rates in the other direction, up. And since the Reserve Bank of Australia is working on a firm growth foundation, they have no worries about tightening up monetary policy to control rising prices which stem largely from the country's super-tight job market. Other central banks would have to sacrifice economic growth with interest rate increases. And that's just something Australia won't have to do," Mr. Crooks states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspxNewsletterEntryId=1466

About JACK CROOKS & MONEY AND MARKETS

John (Jack) Crooks is the founder and president of Black Swan Capital, an independent advisory firm specializing in foreign exchange and currency markets investing for retail and institutional clients. A seasoned financial advisory with nearly 20 years of investment experience, Mr. Crooks uses both quantitative and qualitative approaches to determine the fundamental driving force(s) behind the movement of the currency, capital, and commodities markets. He is the editor of Weiss Research's latest investment offerings, World Currency Alert and World Currency Options, which were launched in August 2007.

Mr. Crooks also founded Ross International Asset Management, a discretionary money management firm specializing in global stock, bond, and currency asset management for retail clients. Previously, he was general manager of Plexus Trading, where he specialized in currency futures and commodities trading. During his successful career, Mr. Crooks served as chief currency and futures strategist of M2 Futures Inc., an investment boutique headquartered in Chicago, as well as vice president of Global Strategic Research for an international investment boutique, where he was responsible for providing daily advice and global strategy analysis.

Prior to entering the investment arena, Mr. Crooks held various corporate finance positions. He has written extensively on the subject of global currencies and international economics and has been published in Asian Times, Futures Magazine, Barron's, Bloomberg, Dow Jones Newswire, and across many financial websites. He has also appeared on Bloomberg TV and CNBC.

Mr. Crooks holds a bachelor's degree in finance from Florida State University and a master's in business administration from the University of North Texas.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

The Australian Dollar

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The Australian Dollar

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