This week is turning out to be a great week to buy international shares. Or any ASX shares that hold international shares or assets for that matter.

Why?

Well, because our Australian dollar has been on a tear this week, that’s why.

On Monday, the Aussie dollar was buying around 67 US cents. Yesterday, our dollar hit 69.83 US cents before dropping back to 69.3 US cents – an extraordinary rally over just 2 days. We’re now back at a pre-coronavirus level against the greenback.

Why a higher Aussie dollar is significant for international shares

A higher Aussie dollar has many effects across the economy. Imports are cheaper, whilst exports become more expensive.

By extension, any assets that are defined in US dollars are now less valuable in Australian dollar terms. That’s why we’ve been seeing US-dominated investments like some exchange-traded funds (ETFs), listed investment companies (LICs) and listed investment trusts lose some steam over the past 2 days, despite a rising share market in both countries.

Take the iShares S&P 500 ETF (ASX: IVV). This ETF tracks the largest 500 companies over in the United States. Over the past week, IVV has lost 3.33% whilst the actual S&P 500 Index has risen 1.47%.

We can see the effects of this currency swing by looking at the iShares S&P 500 (AUD) Hedged) ETF (ASX: IHVV), which takes the impact of currency fluctuations away from its returns. This ETF is up 1.4% over the past week.

Whilst these movements are painful for anyone already holding US-based or international shares, by the same logic, it’s a good time to buy.

Buying a US-listed investment when our currency is at 69 US cents will make for a profitable investment on currency alone if the Aussie dollar heads back down towards the lows of ~55 US cents that we saw back in March.

Thus, I think this week is a great time to think about adding some international shares or ASX-listed ETFs, LITs and LICs that hold US investments.

Magellan Global Trust (ASX: MGG) is one such option. It’s an LIT that primarily invests in top US companies like Microsoft, Alphabet and Facebook.

MFF Capital Investments Ltd (ASX: MFF) is another option to consider. It’s a LIC that also invests in US companies with a long-term outlook. Some of its top holdings include the US payment giants Mastercard and Visa. MFF shares are still more than 25% below the highs we saw in February, despite the US markets’ strong rebound.

If those investments still don’t appeal to you, ETFs like IVV or perhaps the Vanguard U.S. Total Market Shares Index ETF (ASX: VTS) are always a solid choice.

Foolish takeaway

For those ASX investors who might desire more diversification in their ASX-dominated portfolios, I think this week is a great time to consider adding some US-based investments. With the Aussie dollar now closer to historically ‘normal’ levels, it’s a chance that may not come back for a while.

More reading

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• Why I’m not afraid to invest in shares during this recession
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• 10 top ASX growth shares to buy in June for strong returns
• How to make $1,000 a month in dividends

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Facebook, Magellan Flagship Fund Ltd, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Facebook, Mastercard, and Visa. The Motley Fool Australia has recommended Alphabet (A shares), Facebook, and Mastercard. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you are looking to invest in dividend shares, then you’re in luck. I believe there are a large number of quality options for investors to choose from right now.

Three ASX dividend shares that I would buy are listed below. Here’s why I like them:

BHP Group Ltd (ASX: BHP)

I believe that BHP would be a great dividend share for income investors that are looking for exposure to the resources sector. I think the Big Australian is well-positioned to deliver strong free cash flows this year thanks to high iron ore prices. This has been driven by supply disruptions in Brazil and robust demand from Chinese steel makers. I estimate that the mining giant’s shares currently provide investors with a forward fully franked 5% dividend yield.

BWP Trust (ASX: BWP)

Another ASX dividend share to consider buying is this real estate investment trust. BWP has a focus on warehouses, with most of them leased to hardware giant Bunnings. I believe Bunnings is a high quality tenant and unlikely to be leaving its properties any time soon. Especially given how the retailer is owned by Wesfarmers Ltd (ASX: WES), which is also a major BWP shareholder with a ~23.6% stake. At present I estimate that it offers investors a forward 5.1% yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider is Rural Funds. It is a property company which owns a portfolio of agricultural assets across Australia. It generates its revenue from long-term leases across five sectors: almond and macadamia orchards, cattle assets, vineyards, and cotton assets. Pleasingly, the company has not been impacted by the pandemic and remains on course to increase its distribution to 11.28 cents per share next year. This equates to a very generous forward 5.5% distribution yield.

More reading

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• Is the BHP share price cheap right now?
• 5 things to watch on the ASX 200 on Wednesday
• Smash low interest rates with these ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The new $688 million grant to stimulate the construction sector is a fillip to a handful of ASX stocks and will add to the euphoria on the market.

The S&P/ASX 200 Index (Index:^AXJO) is set to break above 6,000 points this morning thanks to a strong lead from Wall Street and the federal government’s housing boost that was unveiled last night.

But how much of a boost the new grant can provide remains to be seen as there are a number of disappointing features in the new scheme.

Low end of scale

For one, the $25,000 cash handout is at the low end of estimates. There was speculation that the grant would range between $20,000 and $40,000, with some commentators even tipping it could go higher.

The not as bad as expected GDP figure for the March quarter and early signs of an economic recovery from the COVID-19 shutdown may have persuaded the Morrison government from being so generous.

There are also questions about whether the policy is well targeted or will make as much of a difference to the economy as it could.

Who qualifies for the housing grants?

The grant, which is aimed at protecting construction jobs, can be used by eligible households to renovate or build new homes.

To qualify, singles cannot earn more than $125,000 and couples not more than $200,000 in FY19, according to The Guardian.

The new home that is being built must be used as the principal place of residence and the property value (including land) cannot exceed $750,000.

For renovations, the project must be between $150,000 and $750,000 with the existing property worth not more than $1.5 million.

ASX stocks in the spotlight

Before the details were released, I thought the grant would provide a big support to sagging house prices. Now I am not so sure even though new home developers like Stockland Corporation Ltd (ASX: SGP) and Mirvac Group (ASX: MGR) are likely to benefit.

Hardware retailers like those owned by Wesfarmers Ltd (ASX: WES) and Metcash Limited (ASX: MTS) will also see a sales boost as these are where tradies go to get supplies.

By extension, home fitting suppliers are another group that will benefit from the new stimulus. These include GWA Group Ltd (ASX: GWA) and Reece Ltd (ASX: REH).

Further, construction materials companies like CSR Limited (ASX: CSR) and James Hardie Industries plc (ASX: JHX) should also be excited if the stimulus leads to the construction of 30,000 new homes by Christmas, as intended.

It’s a wasted opportunity that the scheme didn’t target social housing. I think that is a better way to support the construction industry and wider community without distorting the housing market.

More reading

• Is the CBA share price cheap today?
• Should the Xero share price have a P/E ratio of 4,000?
• 5 things to watch on the ASX 200 on Thursday
• These ASX 200 shares could be perfect for a retirement portfolio
• The latest ASX 200 stocks to be upgraded to “buy” amid the recession

Motley Fool contributor Brendon Lau owns shares of James Hardie Industries plc and Reece Australia Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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