Numerous products are set to benefit from a stronger Australian dollar after the Reserve Bank of Australia (RBA) kept its key rate unchanged at 4.25% this week.
In total, there are 390 live retail tranche products with an estimated $21.74bn across various jurisdictions that include exchange rates involving the Australian dollar as an underlying, according to the SRP.com database.
JPMorgan Chase's Single Observation Capped Market Plus Notes - AUD/USD, which matures on 17 February, is on track to return at least 104% of initial investment at the end of its six-month tenor. Investors will benefit from the recent surge in the AUD/USD exchange rate if its appreciation over the investment period exceeds 4%, whereby 100% participation in the reference index return will be offered, subject to a maximum coupon of 10%.
The Australian dollar leapt to a record high of 0.82 euro while reaching 68.3 pence, a 27-year high against the sterling, and racing past 108 US cents shortly after the Tuesday announcement. The central bank said it was encouraged by reports showing the US economy was picking up along with limited progress on the Eurozone debt crisis.
Currency dealers expect the local currency to test and exceed its all-time highs against the US dollar of 110.81 cents, which was set in July 2011.
These products are available across a number of SRP.com databases.