The Lucky Country. Finally!

Acorn. Biting the bullet and getting long the Ozzie Dollar

Dall-E imagines a squirrel and a koala bear underneath a Eucalyptus tree

Summary

• The 🐿️’s “Lucky Country” trade was at risk of becoming a bit of a shaggy dog story.We are finally taking a long position in AUDUSD via call options on AUD futures

• The chart is far from ideal technically and there are (always!) concerns about the local property market, but we think that there are a number of powerful reasons to be long-term bullish AUD

• The AUD is currently at a price point equivalent to the depths of Covid, the GFC and SARS. This does not make sense to us for several reasons.

• In a multipolar world, Australia is the reliable resource partner of choice for “The global West”. There is also the natural bid to AUD that repatriation of (unhedged) assets by the country’s jumbo superannuation funds will supply as the boomer generation retires this decade and beyond.

• We suspect that, with hindsight, 2023 might look to be an outstanding entry point into the currency.

Important Note: I am starting sm…