Essays about: "Australian Dollar"

Found 2 essays containing the words Australian Dollar.

1. 1. The relationship between carry trade currencies and equity markets, during the 2003-2012 time period

   University essay from Företagsekonomi

   Author : Andrei Dumitrescu; Antti Tuovila; [2013]
   Keywords : carry trade; correlation; currency; equity indexes; financial crisis; foreign exchange; risk premia; uncovered interest parity; volatility; S P 500; FTSE All-World; VIX;

   Abstract : One of the most popular investment and trading strategies over the last decade, has been the currency carry trade, which allows traders and investors to buy high-yielding currencies in the Foreign Exchange spot market by borrowing, low or zero interest rate currencies in the form of pairs, such as the Australian Dollar/Japanese Yen (AUD/JPY), with the purpose of investing the proceeds afterwards into fixed-income securities.To be able to determine the causality between the returns of equity markets and the foreign exchange market, we choose to observe the sensitivity and influence of two equity indexes on several pairs involved in carry trading. READ MORE

3. 2. Carry Trading & Uncovered Interest Rate Parity : An overview and empirical study of its applications

   University essay from Företagsekonomi; Nationalekonomi

   Author : Farid Tafazoli; Mathias Westman; [2011]
   Keywords : Uncovered Interest Rate Parity; Australian Dollar; Norwegian Kronor; US Dollar; Japanese Yen; Carry Trading;

   Abstract : The thesis examine if the uncovered interest rate parity holds over a 10 year period between Japan and Australia/Norway/USA. The data is collected between February 2001 - December 2010 and is used to, through regression and correlation analysis, explain if the theory holds or not. READ MORE