In this month’s Cross Asset Review, we assess the past performance of various asset classes and draw implications for multi-asset investors. During the month of February, the worst performing asset classes were Global and Australian REITs, the Australian Bonds Composite Index and gold. The Australian dollar index closed at 2.4% due to an increase in commodity demand and prices. The continued monetary and fiscal support around the world, and the broadening of the vaccine rollout program, is likely to provide ongoing support for cyclical recovery in economies, businesses and earnings.
1. Safety assets lose money
2. Asset Growth over Past Decade
3. Periodic returns for AUD as of 28/02/2021
- The biggest relative losses for the AUD over January were against the GBP (-0.86%), the TWD (0.33%) and the CAD (0.52%).
- On the other hand, the AUD made strong gains over the CHF (2.86%) and the JPY (2.65%). Over the last quarter, the AUD appreciated most strongly against the JPY and the KRW.
- From our FX cyclical and strategic analysis, our expectations of the AUD from here continues to be bearish. There is no evidence to suggest that investors should consider hedging their risks against majors such as the USD at this stage
4. Currency Effects
5. Yearly returns for AUD against other currency pairs
6. Correlation between Sectors in the past three years
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