This used to be one of the hottest currencies in FX. So what happened? Well, a lot happened, and the Aussie Dollar did have quite a roller-coaster ride through the commodity boom of the 2000’s, the recession afterwards, a finally relapsing China and a falling global commodity market. But an AUD/USD analysis technical is much more than just all of these. Australia is evolving unlike the kangaroos and opening new avenues.
Factors affecting AUD/USD analysis technical:
The future will be much different from the past and even the present for these Aussies. After years of lavishing from the mining boom and with today’s lowering crude prices the economy looks to be heading towards newer prospects away from just exports and services. Here’s how: -
Australia has one of the worlds’ largest mining resources available, more than $700 billion. Aussie mining boom was directly related to the Chinese humongous economic growth and now that the latter has receded so has Australia’s mining. It’s not a booming sector anymore and is slowing. With South Africa and Ghana’s meteoric rise to the top, Australia is facing steep competition.
However, the government is looking towards own manufacturing and have invested heavily in it. Although this has increased the current account deficit, it will reap rewards in the future. Also, with South Asia recording highest GDP growth figures in its history, highest worldwide as of now, Australian exports may increase despite China’s slow growth.
It is absolutely certain that the raw commodity market is experiencing irregular and fluctuating prices which in turn affect the AUD/USD daily technical analysis. Australia depends heavily on its raw exports, - minerals, crude oil, dairy, livestock, etc. And with global pricing fluctuating, investors find the situation of investing in Aussie Dollar to be of high risk.
Maritime trading is the very backbone of Aussie economy and traversing international waters always has its own risks. New bilateral ties and international relations may help it gain the stability and reliability it needs to attract investment and avoid excessive price fluctuation.
USD vs. AUD
USA has charted a 1.2% GDP growth in Q2 of 2016 compared to a 3.2% from the Aussies. Yet, USD is still a more stable currency option for FX investors and traders alike. To increase exposure and attract more security, the Australian government has lowered interest rates at an all-time nadir of 2.5%. AUD is slowly gathering momentum in both long and carry trading against the higher interest rates of USD. Carry trading affects AUD/USD technical analysis today and for every other day.
AUD/USD analysis technical and immediate forecast:
Averaging around the 0.75 and 0.76 the market is expected to achieve higher 0.8s powered by stronger growth figures. If conditions persist, AUD will gather further momentum and security throughout this year especially if the commodity market improves. Growing industrial nations such as Taiwan can revive Aussie raw exports. Weaker US GDP predictions give AUD a stronger base and an overall bullish outlook. AUD/USD daily technical analysis, however, will fluctuate, and an 80-120 pip movement is expected in general with persisting conditions.
AUD/USD analysis technical is one of the hottest ongoing topics. And keeping in mind these factors would give any trader an upper hand in profiting from it. But whatever it might be, with the proper attitude, AUD/USD will be worth every cent one way or another.