As we can see from the chart, in fact, the AudCad exchange (red candles) follows quite closely the trend of the relative HUI / XOI strength (black line). If we take the end of a trend favorable to the gold stocks in place since 2000 for granted, then there should be no doubts about the need to rebalance the medium-long term currencies portfolios with a preference for the Canadian Dollar (representative of the oil) to the expense of the Australian dollar (representative of the gold- stocks). In the past 16 years, this exchange ratio decreased in 13 cases during the month of August (Chart source: Bloomberg).
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