AUD, Aussie Equities Correlation Points to Carry Trade

        0033 GMT [Dow Jones] The very close correlation between Australian equities--particularly financials: banks, real estate investment trusts, asset managers--to a falling AUD versus USD in the later part of the third quarter confirms just how big the "carry trade" was in Aussie assets, says Charlie Aitken, executive director of Bell Potter. Looking ahead to the final quarter, he says the story will be USD strength, which brings volatility across asset classes. Aitken is bullish USD and short AUD. He remains bearish Australian equities and underweight financial stocks. "I am long volatility and long portfolio protection." (robb.stewart@wsj.com; Twitter: @RobbMStewart)
        (END) Dow Jones Newswires

        September 30, 2014 20:33 ET (00:33 GMT)