Currency analysis aud

The AUD has a peculiar risky characteristics, it rises dramatically with the rise in commodity and stock and falls when things get worst. Technically this behavior is impressive as it respect support and resistance lines, trend lines etc. Below are some analyses on the Australian dollar.


Australia as a small country ranked no 13 in the world in terms of Gross domestic product GDP in the year 2009, and in terms of value in export it ranked number 19 making Australian dollar one of the key 5 currencies in forex trading, this is solely based on the country’s three Gs : its geology, government policies and geography. Its geology encompasses its natural resources such as diamond, crude oil, gold, iron ore, coal, uranium, nickel and agricultural products. It's geographical advantages includes the country location, as it gives fast growing Asian countries with high desire for natural resources the leverage to trade with them. Australia due to its governmental policies has a stable economy, fair stable high interest rate, a western insight in business and a lack of intervention in the currency market. Normally a nation's currency is determined by it central bank but in Australia its currency is determined by Reserve Bank of Australia ( RBA), which is an institution that is conservative and don't make much interventions in the currency market but rather controls inflation making Australia one of the countries in the world with the highest interest rate


In the world Australia ranks as the 13th largest economy as the depends solely on commodities such as mining which represents 5% of the countries' GDP, agriculture 12% with a large percentage been exported out of the country. Despise the country's GDP and also the economic liberalization policy which dates back to the 1980s, Australian economy has not recorded a universal impact from the country's resource wealth, leads to the high foreign Dept of the country.


Release of GDP, industries production, inflation, retail sales, and trade balance are known as the major economic data of a country and the availability of this information is credited to media houses, but in Australia although this information are important the country's economic data rely mainly on commodities such as mine output, metal price, harvest, weather and crop planting. This information plays a major role in the rise of the Australian dollar. And fortunately this information is available online courtesy of Australia's Bureau of Agricultural and Resource Economics and Sciences (ABARES). Also factors like demand for commodities by Asian countries such as China, India and Japan plays a great role in the value of the Australian dollar.


Currency of a country is kind of difficult to control as it fluctuate regularly, Austria is a country that depends solely on agricultural and mining commodities, and it is also difficult for Australian businesses to compete base on the country's high interest rate and non competitive cost. The survival of the AUD in the market is tied to its high rates, commodity price and also the rate of importation by its Asian customers.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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