When I was 20 yrs old my father introduced me to a guy from the USA and said listen to what this guy has to say and make up your own mind. The guy was a life insurance broker and I guess this was my first experience with buying life insurance. The most unpleasant part of my decision to go for it, was the prostrate exam that the policy forced me to have.
Anyway lets fast forward 23 yrs I can get far cheaper life cover in Australia where I live than the policy in the US is costing me so I decided with the weak Aussie Dollar this would be a good time to cash in the surrender value of the policy. As you can see from the chart below the value in AUD has gone up more than 25% in value in the last year or so.
Here comes the cute part, my wife fancies herself as a currency trader. She tells me that she has heard comments that AUDUSD is heading towards 69 cents so we should not cash the cheque yet. Her trade is already 2 cents in the money but this is where I say be careful not to get too cute. I personally feel very neutral on things at the moment and would happily exchange my USD for AUD now. We are at quite an important technical point should we break the support around the 76 cent level. Should we not break to new lows then I think we can see a decent size multi month bounce from these levels.
I look forward to reporting back the insights I gain from my wife’s new found zest for trading forex.