I have been looking at several currencies and commodities. I noticed that the Sep 05 Australian Futures contract (AUD or 6A) is trading at a discount to the Jun 05 contract. Can you please explain why that is so. The Jun is expiring soon, I would think this would not occur. Maybe, most people are very bearish on this currency. Currencies such as Euro and Canadian are not doing that today. Thanks for your input. larryTAKEOUT@seldin.net
Because Australian interest rates are much higher than US interest rates. You'll notice than the June contact is also at a discount to the spot rate. You'll notice the same in cable.